Money News
Online gaming companies are to pay a 15% remote gaming duty. This is considerably higher than the industry hoped for. It is difficult to see any operators moving onshore and volunteering for it.
As such, the government's objective under the Gambling Act of increasing tax revenues by moving these companies onshore is likely to fail. Operators that are partially in the UK will have to look carefully at where they site their online gaming equipment if they are to avoid this duty.
The scrapping of the Gross Gaming Yield 2.5% band and introduction in Budget 2007 of a 50% rate is likely to lead to a number of the larger casino operators being more highly taxed. It is also likely to make the larger casino licenses under the 2005 Act, and a number of the new casinos under the old 1968 Act, less attractive.
However, VAT will not be charged on remote participation fees on bingo, poker and betting exchanges, which means they will retain their advantage over UK based bricks and mortar bookmakers and casino operators.
For those who prefer to do their gambling down the pub, there was a round of increases in the size of jackpots that slot machines are allowed to offer. For example, machines charging 5-50p will now be able to offer a maximum jackpot of £35, up from £25.
Bad news for the bingo halls, there was no mention of a tax cut for bingo operators, who were hoping to offset the negative impact of the coming smoking ban.
22 March 2007 © Moneyextra.com
Moneyextra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.