Offshore Gambling Operators to Pay 15% Tax
The UK government is going to impose a 15% tax rate on offshore online gambling operators which could bring in as much as £300 million for the taxpayer. The new rules, coming into effect in December 2014, state that gambling must be taxed according to where the player is based rather than where the operator is registered.
The Economic Secretary to the Treasury, Sajid Javid, said “It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the Government is taking decisive action to ensure this can no longer happen. These reforms will ensure that remote gambling operators who have UK customers make a fair contribution to the public finances.”
The change is going to have an effect on some of Britain’s largest operators such as Ladbrokes, Bwin.Party, William Hill and Betfair which all have operations based in Gibraltar where taxes are levied at 1% and capped at £425,000.
In the past William Hill has suggested that it may challenge the changes on the grounds that they breach European Union competition law. However, as of yet there has been no further comment on this.