The UK government has announced plans for a public consultation on online gambling tax reform.
The Treasury Chanceller Jeremy Hunt, in his Autumn Speech, revealed the government’s intention to introduce a unified tax on remote gambling.
This new approach will replace the current system, which is divided into three distinct taxes: the remote gambling tax, the general betting tax and the pool betting tax.
Current structure and proposed change
Under the current regime, the tax on remote gaming is calculated at 21% of profits from online gaming.
On the other hand, the general tax on betting and the tax on pool betting are set at 15% of the respective receipts.
Hunt highlighted that “consultation (for this new tax structure) will begin soon”, covering games offered via the internet, telephone, television and radio.
It is important to note that the proposal does not suggest changes to the taxation of land-based games.
Future perspectives and regulatory consultations
At the same time, the government and the Gambling Commission are in the process of consulting on the proposals in the Government’s White Paper on Online Gaming.
Tim Miller, executive director of policy development at the Online Gambling Commission, reported that “upcoming consultations will deal with socially responsible incentives, customer-controlled tools, transparency in protecting customer funds.”
“In addition to annual financial contributions for research, prevention and treatment, regulatory data reporting, financial penalties and reporting of key financial events,” Miller added.
These consultations are expected to last until February or March.
Impact on the sector and expert opinions
Unifying taxes on online gaming represents a significant step in simplifying the sector’s tax structure.
Gambling and economic experts suggest this change could lead to greater administrative efficiency and transparency.
Furthermore, it is expected that tax reform could impact the way online gaming companies operate in the UK.
Potentially influencing your market strategies and consumer offerings.