UK Budget Targets Offshore Gambling Companies
The latest Budget produced by the UK government is targeting offshore gambling companies that target UK gamblers with a point of use tax rather than the current format which works on a point of supply basis.
This essentially means that gambling companies that are offshore will now find it more expensive to attract and keep UK gamblers. We think that it is quite right for companies taking bets from gamblers in the UK to pay tax on these bets. A large amount of jobs and tax revenue has been lost in the last few years due to the migration ofcompanies to offshore betting tax havens.This has also resulted in a massive loss of jobs within the UK gambling industry.
UK gambling companies like Victor Chandler, Ladbrokes and William Hill have all moved their companies to be outside of the UK to take advantage of this loophole. The current budget will see this loophole closed and make it a more level playing field for all companies taking bets from UK gamblers.
The current budget also sees a flat tax rate being imposed on machines in betting shops raised to 20% and reduce the amount of tax to 5% for low stakes a prize machines.
We think that this is a sensible thing to do as it does ultimately benefit the UK gambling industry. Tell us what you think about the Budget in regards to gambling below.
Written by Greg for Gambling Games UK.