HMRC levels the playing field for gambling taxes

From today, businesses that offer gambling to UK customers from overseas will have to pay Remote Gaming Duty (RGD), General Betting Duty (GBD) and Pool Betting Duty (PBD), HM Revenue and Customs (HMRC) has confirmed.

As the gambling industry becomes increasingly international and focused towards online activity, some gambling operators have based themselves overseas to avoid paying UK gambling taxes. It is estimated that the remote gambling market in the UK is worth over £2 billion each year.

From today, the taxes are now charged on the ‘place of consumption’ of the activity, meaning that, no matter where in the world a remote gambling operator is based, they will have to pay RGD, GBD and PBD if they offer remote gambling to a customer who usually lives in the UK. The changes include gambling offered over the internet.

Gambling operators who become liable to these taxes for the first time can register for them online at https://www.gov.uk/gambling-tax-service-registration-guide

Exchequer Secretary to the Treasury, Priti Patel said:

“The new rules will provide a fairer tax system for all gambling operators. Those businesses that moved their operations abroad to avoid paying UK taxes will now have to pay their fair share of tax.

“The Government has created a level playing field across the gambling industry so that all gambling by UK consumers is now subject to UK tax.”

Sally Beggs, Deputy Director, Gambling Taxes, added:

“With the gambling industry becoming more international and internet focused, so the rules need to change. HMRC will support this with appropriate and robust enforcement activity.

“If your business is affected and you haven’t yet registered, you need to do so as quickly as possible.”

Notes for editors

1.  The government announced at Budget 2012 that it would move to taxing remote gambling on a ‘place of consumption’ basis, after HM Treasury’s review of the taxation of remote gambling in autumn 2011.

2.  Remote Gaming Duty applies to remote gaming, such as casino games and bingo played over the internet.

3.  General Betting Duty applies to fixed odds betting and pool betting on horse and dog racing.

4.  Pool Betting Duty applies to pool betting (other than on horse and dog racing) and non-fixed odds betting.

5.  The new rules mean that some businesses will need to appoint a HMRC-approved representative in the UK.

6.  UK-based operators that provide remote gambling services to customers who do not usually live in the UK will no longer be liable to the taxes on such transactions. Businesses such as casinos and bingo halls are not affected unless they offer remote betting or gaming.

7.  HMRC has written to UK-based betting businesses and other operators who are already liable to these taxes, asking them to update the details which we hold about them. This will enable us to put them onto our new system and means that they do not need to register online. These existing customers will, in future, be able to file their returns online if they want to.

8.  More information about the changes can be found at

  https://www.gov.uk/gambling-tax-reform-new-rules-from-1-december-2014

9.  Follow HMRC’s press office on Twitter @HMRCpressoffice

10.  HMRC’s flickr channel www.flickr.com/hmrcgovuk