UK Online Gambling Revenues Rise In the Face of New Tax RegimePublished December 9, 2014 by Lee R
A new report provides the realistic picture concerning UK regulatory changes.
Online gambling revenues currently account for 17% of the overall gambling market share, according to the UK Gambling Commission. The financial report figures reflect figures from licenses established before the new gambling act came into effect for the 2013/14 tax year.
Land-based casinos remain the majority of the earners for gambling, despite the jump in online use in light of the newly introduced UK gambling regulation.
As far as online gambling performance itself is concerned, online gambling rose a healthy 22% from the previous year’s gross revenues, or over a fifth. The figure is expected to grow more over the next year as an increasing amount of online operators appeal new UK Gambling Commission regulations limiting licenses or unduly favoring new gaming and tax laws.
The Commission further reported the overall sports betting turnover as a gross of £25.4 billion, or a 30% jump. As of December 1, another piece of relevant legislation went into effect: the Gambling Licensing and Advertising Act 2014 will issue licenses to operators in further jurisdictions approved by UK regulators.
This will among other things require previously operating high end bookmakers in the UK market to pay a 15% point of consumption tax and have an additional license established by the UK Gambling Commission.
The function of the new regulations was described by Exchequer Secretary to the Treasury Priti Patel is to “provide a fairer tax system for all gambling operators. Those businesses that moved their operations abroad to avoid paying UK taxes will now have to pay their fair share of tax. The Government has created a level playing field across the gambling industry so that all gambling by UK consumers is now subject to UK tax.”
In other words, the Gambling Licensing and Advertising Act will expand the regulatory jurisdiction of the UK Gambling Commission to UK operators who have since move their operations abroad.
Online gambling providers wishing to operate within the regulated UK market will be required to pay a 15 percent point of consumption tax and obtain licensing from the UK Gambling Commission as well.