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Philip Hammond, British Chancellor of the Exchequer, has announced a 6 per cent increase in remote gaming duty by 6 per cent in his new Budget. The raise – which will be applicable to online casino games such as poker and blackjack – will come into effect on October 2018.
The tax hike is intended to fund the crackdown on fixed odds betting terminals (FOTBs).
When the new tax regime will come into force, the tax will rise from 15 to 21 per cent.
The Government intends use the revenue from this tax raise to offset the cost of reducing the maximum stakes for FOTBs from £100 to just £2 from October 2019.
Ministers have criticised the machines as a “social blight” that prey on the most “vulnerable in society.”
Experts had predicted a tax hike to compensate for the cost of reducing the maximum stakes was expected, but some experts say the 6 per cent raise is too step. Some experts even say that gaming companies may not find the UK market profitable anymore.
Richard Williams, licensing, gaming and regulatory partner at London law firm Joelson, told Gambling Insider: “Whilst there had been speculation in the press that the Chancellor would increase the rate of remote gaming duty (RGD) from 15 per cent, the announcement that it will increase to 21 per cent will come as a shock.
“Although a rate of 20 per cent was unwelcome, it would have been manageable.”
“Whilst this is only 1 per cent higher than was widely expected, the increase to a figure of 21 per cent may leave some operators questioning whether it is worth continuing to operate in Great Britain, given the current fiscal and regulatory environment.”
Source: TheSun
Source: Latest News on European Gaming Media Network
