The Autumn statement included possible stealth increase in betting duties, with the government to launch a consultation on the matter.
The Autumn Statement included a possible stealth increase in betting duties, with the government to launch a consultation on the matter.
While the language is unclear, the UK government seemed to imply Pool Betting Duty and General Betting Duty will rise to match the higher Remote Gaming Duty.
“The government will consult shortly on proposals to bring remote gambling (meaning gambling offered over the internet, telephone, TV and radio) into a single tax, rather than taxing it through a three-tax structure,” said the document.
At present, bookmakers must pay the 15% Pool Betting Duty on profits from bets that are not fixed odds when accepting wagers from UK residents.
Businesses are also liable for the similar 15% General Betting Duty on profits for dog or horse racing pool bets, spread bets and bets on an exchange.
However, in all other remote betting circumstances, bookmakers are set a higher 21% tax on profits as part of the Remote Gaming Duty.
The government did not clarify what the new rate would be if these taxes were unified into a single levy, with the possibility remaining the government could set a single 21% rate for all remote gaming.
The news could represent a boost to the land-based and retail sector, which is not included in the consultation.
Autumn Statement also includes Gaming Duty GGY freeze
The government also announced gross gaming yield bandings for Gaming Duty will be frozen from April 2024 until 31 March 2025.
Gaming Duty is a tax on gambling profits imposed on casino gaming – although not slots, which are liable for separate taxes.
Currently Gaming Duty is set at 15% for the first £2,686,000, while up to 50% on GGY above £14,626,000.
The freeze means that casinos will effectively see their tax increased, with the bands not being increased in line with inflation.
This has faced criticism from the industry lobbying organisation the Betting and Gaming Council.
“Freezing Gaming Duty bands is a stealth tax which has the potential to slow recovery and weaken future growth,” said BGC CEO Michael Dugher.
“Removing it would have provided a welcome boost for the land-based casino sector at a crucial time.
“Instead, the decision to maintain the status quo represents a missed opportunity for companies ready and able to generate jobs and investment across the country.”
The trade body claimed the tax band freeze would cost casinos £25m over the next five years.
The other major UK gambling tax reform, the introduction of the statutory levy, is currently under consultation with DCMS.
Under the proposed rules, online gambling operators will see a 1% tax on revenue to fund research, education and treatment initiatives, replacing the currently system of voluntary contributions.