UK Chancellor to Hike Tax for Foreign Casino Operators

offshore casino gambling ukPhilip Hammond, Chancellor of the United Kingdom, has been closely monitoring the offshore gambling industry and is planning to increase the taxes later this month. This new move would cause a lot of resentment amongst the casino operators situated offshore and would lead to unrest in the UK iGaming market.

The UK Chancellor has decided to increase the taxes paid by the foreign remote gaming operators who offer different casino games like for instance blackjack, roulette and poker. The government officials have admitted that such kind of move is likely to raise the revenue by roughly £1 billion in a time span of five years.

The concentrated efforts of the government to crackdown the FOBT or Fixed Odds Betting Terminals has led to a massive controversy as the high street bookmaker fear that it would curtail their overall revenue by 50%.

In spite of that, the UK government has decided to move ahead in this regard and would undoubtedly create a big hole in the budget; the money received from increasing the taxes from offshore gambling operators can and should fill this big gap.

Last year, the ministers had declared their plans to cut down the maximum FOBT stake to £2 from £100 to deal with the issue of problem gambling following a heated and lengthy discussion and argument with the legislators.

The FOBT machines are said to generate revenues to the tune of £1.8 billion and the exchequer will receive a whopping £400 million in overall taxes. This is indeed a lot of money for the UK government, and this is the biggest reason why a large number of legislators are appealing against the cuts on FOBT odds.

Revenue Raising Measures

The foreign casino gambling industry has agreed by the decision of Chancellor Hammond to increase the gaming taxes from the existing level of 15% of gross gambling yield to somewhere between 20 and 20 percent. In such kind of situation, it would cause a lot of problems for the likes of Ladbrokes and William Hill.

These two foreign casino operators have a significant share in the UK gambling industry and would be deeply affected by the cuts in FOBT. In the event, if the tax for offshore gambling operators is increased, both William Hill and Ladbrokes have to bear the brunt as both these casinos are based in Gibraltar.

The UK Chancellor is likely to announce on October 29, 2018, about the revenue-raising measure assortment. He is looking forward to showing a budget that will help the economy to grow and prosper. At the same time, the government has made plans to introduce an advertising campaign worth several million pounds to wipe out problem gambling from the country.

A study will be launched by the Public Health England to understand the impact of gambling on the public health of the players. In the recent time, the UKGC has imposed strict gambling regulations on all online casino sites to adhere to the age verification rules of the gamblers.

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