RGD rise could be in place by April 2019
New implementation date would see the Treasury benefit from “a year of double taxation”
The proposed rise in Remote Gaming Duty (RGD) could come into effect as soon as April next year, according to reports from the Treasury, but not before a public consultation later this year.
The Times reported the updated timeline on Friday, with the April implementation date a full year ahead of what many in the industry had expected.
“Its introduction before the lower FOBT stake means the Treasury will, in effect, benefit from a year of double taxation,” The Times said, noting that FOBT stakes will not be capped to £2 until April 2020.
The paper said the level of the tax has yet to be decided but it “could be lower than many in the gambling industry fear”.
Clive Hawkswood, chief executive of the Remoting Gambling Association, said everyone was currently “speculating”, and told EGR: “We are in discussions with Treasury, but the timing of implementation and the level of increase in remote gaming duty are both still to be determined.”
Hawkswood added: “There will be a public consultation, probably in September, on detailed proposals and in the meantime we are getting our own modelling done.”
Former Cenkos analyst Simon French said RGD of 20% was the most likely outcome, although did not speculate on the timeline.
No, will be 20%
— Simon French (@SimonFrench1979) June 15, 2018
The RGA and others have pledged to fight the proposed rise in RGD, describing the UK government’s justification as “unfair”.
Hawkswood said last month: “All this stuff about making up the shortfalls – they [the Treasury] have already done that and I think if that is the justification then it is an unfair one,” he said.
“In 2014 the tax revenues from online gambling were negligible but we estimate that next year they will exceed £800m. Surely that is enough already to fill any potential shortfalls?”