The United Kingdom will not increase its gambling tax, at least for now.
Two weeks ago, speculations emerged that the incoming Labour administration was mulling a gaming tax increase.
These rumors sent shockwaves across the sector, leading operators’ stocks to plummet. However, gambling enterprises can now rest easy because no tax increases are on the horizon.
No Tax Increase for the Gambling Sector
The Labour Party published its first budget in around 15 years. As many predicted, it described tax rises across the board, consistent with the government’s previous pledges to cover a £22 billion “black hole” purportedly created by the Conservatives.
Overall, the government wants to raise an additional £40 billion in taxes. Experts predicted that a tax hike on the gaming industry might generate an additional £3 billion per year.
While some applauded the proposed rise, industry groups were concerned about its consequences, claiming that it would harm the market. British gaming is already grappling with reforms and adjustments, and it does not need any more problems, industry supporters stated.
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Fortunately for gaming sector stakeholders, the 2018 budget did not include any increases in gambling duties.
BGC is pleased with the outcome.
Industry representatives expressed their feedback on the new budget. Grainne Hurst, chief executive of Britain’s Betting and Gaming Council, welcomed the lack of a tax increase, praising the government’s consideration to the industry’s concerns.
We have been clear that any duty increases today would have harmed customers, stifled growth, jeopardized employment, and fueled the dangerous, unregulated gaming illicit market. The government has listened to the BGC and our members, struck the proper balance, and resisted appeals from anti-gambling prohibitionists who wish to undermine employment and prosperity.
Grainne Hurst, CEO, BGC
Hurst noted that BGC members may now work to assist the government’s economic plan by creating employment, investment, and additional tax revenue.
In the meanwhile, the BGC will continue to investigate the impact of higher Employers’ National Insurance Contributions on BGC members, particularly smaller and independent companies.
Hurst also stated that BGC members are committed to adopting the Gambling Act amendments, as outlined in the white paper, which called for stronger standards.
Britain’s decision to leave gambling taxes unchanged comes just a few days after France also chose not to raise them.
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