Free play tax a threat to future growth, says RGA
Industry body believes additional levy pressures could endanger sustainability of UK market
The UK government’s plan to abolish the tax-free status of free plays for online casino and bingo operators could stunt the growth of the country’s online gaming industry, the Remote Gambling Association (RGA) has warned.
In his Budget speech yesterday, Chancellor George Osborne outlined plans to bring gaming in line with sportsbook free bets by amending the status of free plays so they are dutiable for the 15% Remote Gaming Duty.
However, the RGA this morning told eGaming Review that, when coupled with the Point of Consumption levy, the new tax, which is due to come into force on 1 August 2017, could jeopardise the UK market’s future prospects.
“We anticipate a period of technical consultation by HMRC with stakeholders in the coming months, which we will very much welcome,” an RGA spokesperson said.
“However given the existing remote tax burden on UK operators, any additional tax is going to be of concern for future remote sector growth and sustainability,” the spokesperson added.
William Hill and Ladbrokes yesterday bemoaned the Chancellor’s announcement while another UK-facing operator told EGR the removal of the tax-free status for free plays looked like “a stealthy way of hitting the industry again”.
DLA Piper tax partner Richard Woolich advised operators to perform a review of their marketing strategies and make the necessary amendments to their rules and regulations before the go-live date.
“Operators will need to compare and contrast the various types of incentives, bonuses and rewards they give their players and VIPs in good time to make any appropriate adjustment to their Ts and Cs,” Woolich said.