Remote Gambling Taxation Under Review: Government Aims for Structural Changes

The government's plan, as outlined by Hunt, involves a forthcoming consultation on restructuring the taxation of remote gambling. The term "remote gambling" encompasses activities conducted over the internet, telephone, TV, and radio. The focus is on eliminating the current three-tax structure, which includes remote gaming duty, general betting duty, and pool betting duty.

As of the 2022-2023 tax year, remote gaming duty stands at 21% of remote gaming profits. General betting duty is set at 15% of net stake receipts, comparable to the gross profits from bookmaking. Pool betting duty is also fixed at 15% of pool betting receipts.

It's crucial to note that the upcoming consultation specifically targets remote gambling. Land-based operators and their tax structures remain unaffected, at least for now.

This move comes in the wake of the fallout from the Gambling Act review white paper, released in April. The white paper outlined the regulatory framework for gambling in the digital age in the UK. Currently under consideration by the GB Gambling Commission, the first round of consultations focused on financial risk, vulnerability, online game design, consumer choice in direct marketing, and age verification at land-based venues. The second round, spanning 12 weeks, will delve into topics such as opting in for online bonuses and refining penalty frameworks, concluding in February or March.