New poll: Following the William Hill/Deloitte report, what rate of taxation would be viable for the UK gambling industry?
What level of tax will best allow the UK egaming industry to minimise black market fears and prevent operators from leaving the market?
In last week’s report on the UK gambling industry, Deloitte revealed that a point of consumption tax would likely drive smaller operators out of the market and force players offshore.
The accounting firm found that a 15% tax could see 40% of the industry find its EBITDA margins reduced below 10%, while a 5% rate could see operators making up 13% of UK online bets driven out of the market.
Since gambling reform plans were announced by John Penrose MP in July, many from within the industry have spoken out, with bet365 co-CEO John Coates warning that the threat of double-taxation could drive operators offshore.
Speaking at the same November select committee hearing as Coates, bwin.party’s Peter Reynolds had argued that the size of the egaming black market is “Damaging to the industry.”
The three potential tax rates assessed by Deloitte in its report were 5%, 10% and 15%, and eGR would like to invite readers to have their say on which they think will be the most viable option for the industry.
To vote, please see the right-hand side of this page or visit the eGaming Review LinkedIn group.