Unified Remote Gambling Tax Proposal in UK for Streamlined Gaming Regulation
Switching Gears: Simplifying Remote Gambling Taxes in the UK
The UK government plans to shake up the tax structure for remote gambling, nixing the current three-tiered system and replacing it with a singular tax rate. Officially named the Remote Betting & Gaming Duty (RBGD), this unified tax would cover all remote gambling activities.
The financial powers-that-be, HM Revenue & Customs (HMRC) and the Treasury, invite industry stakeholders to share their opinions, aiming to craft reforms that simplify the system and ease administrative burdens.
Here's how things currently look:
- Remote Gaming Duty (RGD): Operators fork over a whopping 21% of their profits.
- General Betting Duty (GBD): This duty sucks 15% out of the profits.
- Pool Betting Duty (PBD): And let's not forget poor PBD, laden with a 15% tax on the net stake receipts.
James Murray, the exchequer secretary to the Treasury, put it clearly, stating,
"The tax system needs to catch up with the rapid expansion and tech-driven changes in the UK-facing remote gambling sector."
Indeed, with online gambling ever-growing and diversifying, the existing three-tax system appears dated and no longer reflects the dynamic nature of the sector.
The upcoming 12-week consultation period (closing 21 July) will help shape the final proposal, with final decisions expected in the Autumn Budget 2025. Officials are coy when it comes to revealing a specific RBGD rate, but have made it clear that they aim to strike a balance between preserving industry viability and ensuring fair taxation.
- The UK government is proposing to simplify remote gambling taxes by merging the current three-tiered system (Remote Gaming Duty, General Betting Duty, and Pool Betting Duty) into a single tax rate dubbed the Remote Betting & Gaming Duty (RBGD).
- Stakeholders in the business sector, including HM Revenue & Customs (HMRC) and the Treasury, are inviting opinions from industry stakeholders to create reforms that will ease administrative burdens and align the tax system with the rapid expansion and tech-driven changes in the casino-and-gambling industry.
- The new RBGD tax is expected to cover all remote gambling activities, potentially reducing the excessive tax burden currently faced by operators as it simplifies the tax structure from three distinct duties (RGD, GBD, and PBD) each with a specific tax rate.
- Financing experts have emphasized the need for a balanced approach to the RBGD, aiming to maintain the viability of the industry while ensuring fair taxation in line with the ongoing gambling trends and the ever-growing remote gambling business.
