The government decided to review its tax plan for online casino and bingo freeplays.
UK.- The United Kingdom will revise its plan to tax online gambling operators. Back in March, Chancellor George Osborne had announced that the licensed casino and bingo operators would have to start paying tax on their free bet offers from August 2017.
Earlier this week, Her Majesty’s Revenue & Customs (HMRC) released the information of its consultation with online operators, and it received three responses from advisors or tax representatives, and one from the Remote Gambling Association (RGA). The HMRC reported that what most of the operators wanted to know was whether they would really have to pay the taxes or if they would face consequences. According to CalvinAyre, “consensus response involved freeplay offers that include re-wagering requirements.”
The draft legislation determines that free plays are considered taxable gaming payments every time they’re played, whilst accumulated winnings cannot be deducted from the tax calculation until the player is set to collect the winnings. The operators believe that if this measurements comes into effect, it would severely hurt the market. The HMRC said that they’re considering only taxing the first use of free plays, whilst winnings will only be considered at the end of the re-wagering process.
Furthermore, the UK operators also asked to push the August 2017 deadline that was previously proposed by the Chancellor Osborne and imposed in March. The HMRC said that because of the changes that they’re currently considering, the timeline is reasonable.