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Change Coming to UK Bingo Taxation Rates

Change Coming to UK Bingo Taxation Rates

A newly published report says that thanks to a new law the UK government will receive up to £25 million a year more from taxation of online bingo.

At present a number of online gambling firms avoid tax by basing themselves offshore, however, the new law will make taxation dependent on the location of the player rather than the provider.

Change Coming to UK Bingo Taxation Rates

The UK government is set to bring in a further £25 million a year in taxes thanks to a change in online gambling laws.

At present online bingo raises just £300,000 a year in taxation. According to the report, which was sponsored by Rank Group, bingo halls pay £80 million in tax at a rate of 20%. The new law will set a rate of 15% on all bingo whether online or in a bingo hall, it is thought that this will result in a net gain of £25 million for the government.

However, the Bingo Association has hired PLMR to campaign to reduce the tax rate on the industry. PLMR is planning an integrated public affairs and public relations campaign to make the case for the change to the Treasury ahead of next year’s budget.

Ian Burke, chief executive of Rank, said: “In the run-up to the last General Election, both Coalition parties supported a rate reduction for bingo, bringing it in line with other forms of betting. The Treasury’s plan to make remote betting companies pay gaming duty provides the Government with its best opportunity to fulfill that pre-election promise.”

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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