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UK Budget Hits Online Operators

by Glenn Baird - October 30, 2018

As of October 2019, online operators in the UK will see a significant increase in their tax contributions. This will come as no surprise to most, as the government looks to compensate for the loss of revenue it will face when the maximum wager on fixed odds betting machines is reduced from £100 to £2.

Yesterday, Philip Hammond, Chancellor of the Exchequer revealed his autumn budget, in which we will see tax levels for online operators rise from 15% to 21%, an increase that falls short of what many were predicting.

Reports from last week suggested that the Remote Gambling Duty could rise as high as 25%, which has left some within the industry relieved, whilst others have been quick to criticise the 3rd tax increase in 4 years.

The increase in Remote Gambling Duty is estimated to earn the government 1.22 billion pounds over the next 5 years, whilst they are estimated to lose roughly 1.1 billion pounds from the changes to fixed odds betting machines.

The United Kingdom of Great Britain and Northern Ireland sits to the north-west of mainland Europe. The United Kingdom shares a border with The Republic of Ireland and has coasts on the Atlantic Ocean, Celtic Sea, North Sea, Irish Sea and English Channel. The population of the UK is approaching the 67.6 million mark leading to a fairly densely populated land mass. The gambling sector in the United Kingdom is entirely regulated and licensed by the UKGC – the United Kingdom Gambling Commission. Should players resident In the UK wish to gamble with foreign based operators there is no history of this being treated as a criminal offence, but high levels of protection exist for UK residents playing with UK licensed operators.

Disclaimer:

The above information is what we believe to be the the legal status of online gambling, however information on this topic is limited and hard to find. We accept no liability for any errors or ommissions. It is the reader’s responsibility to ensure that they know the legality of online gambling in their country before engaging with any online gambling service.