The UK government approved on Wednesday the proposed increase in Gaming Duty bands on gross gaming yield generated by UK-licensed casino operators as part of the country’s 2016 budget.
The increase would be effective for accounting periods beginning on or after April 1. Currently, operators comply with the bands set in the Finance Act 2015. Tax rates at present stand at 15% to 50%. Essentially, operators pay a 15% tax on the first £2.3 million of the gross gaming yield they generate. Then, the tax paid rises 20% for the next £1.6 million, 30% for he next £2.8 million, 40% for the next £5.6 million, and 50% for gross gaming yield of more than £5.6 million.
No information was provided on how much the current Gaming Duty bands would be increased. Comprehensive details will be set out in the upcoming Finance Bill 2016.
Casino operators will be expected to submit two returns when paying their duty. The first, an interim return, will need to be submitted by the end of the first three months of the accounting period. The second – a full return – will have to be submitted at the end of the accounting period, which is traditionally a six-month one.
The UK government also announced on Wednesday that certain reforms will be implemented in the way ‘freeplays’ in the Remote Gaming Duty will be treated. Those will be amended in a manner that would bring them in line with the General Betting Duty. The changes will be effective as of August 1, 2017. Specific information about those particular amendments will be provided in Finance Bill 2017.
Generally speaking, under the proposed reforms, all free or discounted online bets will be imposed a 15% General Betting Duty as of August 1, 2017.
According to a forecast published by the Office for Budget Responsibility, the amended treatment of freeplays will result in £45 million being contributed by the gambling industry in the 2017-18 fiscal year, £90 million in the 2018-19 fiscal year, £100 million in the 2019-20 fiscal year, and £110 million in the 2020-21 fiscal year.
Another reform within the country’s gambling regulations will be one related to the Horserace Betting Levy. The current levy is to be replaced by April of next year. Officials said that the upcoming reforms will give the British horseracing industry the right to take advantage of funds generated by offshore remote gambling operators.
