The proposed online gambling tax in the U.K. is causing a great deal of anxiety around the industry.
One can speculate the impact the tax hike will have on the industry’s bottom line. Companies will presumably pass this expense onto the consumer.
International auditing conglomerate KPMG was chosen to conduct the report by the Remote Gambling Association. According to the report, the proposed tax will not achieve its intended purpose unless gross profits are taxed at less than 10%.
From the report:
“Rather than undertake a comprehensive review of the tax regime, the Treasury has made minor changes to the current regime and has merely focused instead on extending its application to operators in other jurisdictions who transact with British residents.”
The report presents a strong voice of opposition to the 15% online gambling tax.
“It is vitally important that the Government does not repeat past mistakes,” says Remote Gambling Association CEO, Clive Hawkswood. “It needs instead to set rates of remote gaming and betting taxation that give operators a realistic chance of being competitive in what is an inherently international market. This is a challenging time for the industry and we will continue to engage with Treasury to ensure the impact of any tax changes is fully understood by the Government. The online gambling industry is a UK success story and already contributes significantly to UK Plc in terms of jobs, marketing spend and corporate taxes. We do not want to see the Government’s plans put these companies and their investments in jeopardy. We argue strongly that any rate above 10 percent GPT is not sustainable in what is a very mature market where consumers already know what level of value and choice to expect.”
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