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United Kingdom: the taxes on virtual gambling revised downward

Tom Lasten 26 January 2013 - 00:23:36
United Kingdom: the taxes on virtual gambling revised downward

The British Government is considering a reduction in the taxes levied on the revenues of online gambling companies. This is the story appearing in an article by our colleague Mail at the end of last week. In fact, several hundred millions in pounds sterling have already been deposited into State coffers, a sum that is amply sufficient and will aid our neighbor across the Channel to effectively combat its deficit.

The tax rate on virtual gambling games soon to be lower

A report published in the newspaper Mail announced last week a probable lowering of the tax rate for online casino games, poker and sports betting in the UK. In effect, starting next year the new rate is to be fixed at 10% instead of 15%. It should be said that, in these times of severe crisis, the British State had very quickly found itself in trouble and to have had few solutions other than to raise taxes on gambling operators on the Internet. But over the last several months, the British Treasury seems to have been faring much better. So the Government of David Cameron has now made the decision to help gaming companies as a way of rewarding them for their efforts. In reducing by 5% the current tax rate, British online betting enterprises should succeed in saving as much as 100 million in pounds sterling per year starting in 2013, if one is to believe the account in the British newspaper.

“In one way or another, the diminution of the tax rate is also a means of reconciling with those pillars of the economy which are virtual gambling operators.”

In one way or another, the diminution of the tax rate is also a means of reconciling with those pillars of the economy which are virtual gambling operators. The big British groups had fiercely opposed the decision of the Labour MPs to collect 15% of their annual revenues. Now, Prime Minister Cameron and his government are counting on the Internet gaming sector to restart the economy, create jobs and revive the British public with purchasing power.

Calling to order the offshore operators

Over the past seven years, the operators have lost nearly 2 billion in pounds sterling in terms of turnover. The reduction in taxes that will take effect in 2013 will offer them the opportunity to recoup a portion of the money lost within British territory. In reducing this crippling tax, the Government hopes to prompt the return of operators which had deserted the British market and fled to more lenient refuges (The Isle of Man and Gibraltar, in particular). What’s more, the Government has signaled a desire to more effectively combat illicit gaming, to implement measures to help compulsive players, and to institute controls over rigged games.

While these arguments should pressure deserters to get back on their feet in the British market, one question still has been left unanswered. In effect, one may wonder whether the players themselves will also be exempted from taxes, a development that would be very warmly welcomed by our British neighbors.

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