15% RTG Tax Hurts UK Aspiration To Lead In Online Gambling

22 March 2007

eGamingReview reported the Remote Gaming Association (RGA) has expressed disappointment at the 15% rate which the UK chancellor Gordon Brown has set for the new remote gaming tax.

The remote gaming tax rate has been set at the same rate as gross profits tax payable by UK-based bookmakers.

John Coates, RGA chairman, said the 15% rate means the UK government has “effectively turned its back on the industry”. “Under this regime, with the additional VAT and corporation tax for most companies, it would be almost impossible for a UK-based operator to compete with offshore businesses, especially those located in other EU jurisdictions.”

However, Clive Hawkswood, chief executive of the RGA, did say there was some good news for the industry from the budget. Contrary to some fears that the chancellor had plans to levy VAT on participation charges, such a measure was not introduced.

In a seperate article eGamingReview reported in part: The Remote Gaming Association (RGA) was quick to add that the new remote gaming tax rate of 15% effectively closed the door to any online gaming companies returning to the UK. Chairman John Coates said: “Quite simply, under this regime, with an additional VAT and corporation tax for most companies, it would be almost impossible for a UK-based operation to compete with offshore businesses, especially those located in other EU jurisdictions.” Martin Dane, tax principal at BDO Stoy Hayward, said the 15% rate was a “real bolt from the blue”. He added: “Together with no indication that the corporation tax regime will recognise the potentially huge tax cost of becoming regulated, this sounds the death knell for the UK government’s aspiration to be the world leader in regulated remote gaming.”

Related News

  • 30 March 2007

    UK House of Lords Deals Joker To Online Gaming Plans

    Telegraph By Harry Wallop Last Updated: 1:22am BST 30/03/2007 The casino industry never had a particularly high opinion of the Government but, after the events of the past 10 days, Labour ministers are being viewed with as much relish as a card-counter at a blackjack table. “The UK is the laughing stock of the world, it really is,” said one senior casino executive.

    Read full article
  • 30 April 2007

    UK Online Casino Operators Not Involved In US Gambling Legislation

    eGaming Review Refusing to support or even offer encouragement for the recently proposed online gambling legislation in the US, the Remote Gaming Association (RGA) has admitted the organization and its members were not interested in becoming “heavily involved” in the recent lobbying effort according to eGaming Review In response to accusations from sources in the US that lobbying efforts for the legislation introduced by Barney Frank were not being supported by the RGA.

    Read full article
  • 14 December 2008

    Online Gambling Blocked in Norway

    It looks like some countries want to follow the US and the UIGEA Bill. Does the US know what kind of influence they have on other countries? If they did would they do anything differently?Last week the Norwegian Parliament passed a ban on financial transactions and online gaming sites. It is very similar to the UIGEA that passed in the US in 2006. This is expected to be put in force by the end of 2009. This ban will mean only state owned gambling, like national lotteries will be legal.

    Read full article