Labour Party Proposes Tax Raid on UK Gambling Firms
The Ministers are proposing a tax raid of up to £3 billion on UK gambling firms. In addition, UK Chancellor Rachel Reeves is seeking funds to improve the country’s public finances. Treasury officials are discussing several proposals. One of which is to double some taxes on online sportsbooks and casinos.
This month’s budget, the first presented by the Labour Party in fourteen years, may contain measures meant to address the £22 billion “black hole” in the country’s finances that the chancellor asserted to have discovered upon taking office.
Despite lobbying from industry groups, sources close to the talks indicated that the Treasury was open to changing the UK’s complicated system of betting and gaming charges to generate an additional £900 million to £3 billion. However, the Treasury had not yet made a final decision. Due to the pending tax hike, fewer people want to learn how to be a bookie in the country.
Tax Raid on UK Gambling Firms
Former poker player and creator of casino games Derek Webb has supported efforts to regulate the gambling business and is now calling for greater taxation on the £11 billion industry. Among Labour’s donors since the beginning of 2023, Webb ranks sixth with £1.3 million.
A tax proposal being considered by Treasury officials originates from the Institute for Public Policy Research (IPPR), which leans left. According to the think tank’s investigation, by boosting taxes on “higher harm” items like online casino games, the government could collect £2.9 billion next year and up to £3.4 billion by 2030.
The UK assesses different betting and gaming levies at different rates depending on the activity; this includes the national lottery. When you exclude lottery duty, the total revenue from taxes last year was around £2.2 billion, for a total of £3.3 billion.
According to the IPPR’s suggestions, the Treasury would not tax “lower harm” activities like bingo and the lottery. However, under the plan, taxes currently imposed on the earnings of high street bookies, such as the 15% general betting levy, would be doubled. When that happens, to become a bookie will be far from people’s minds.
Online operators are already subject to a 21% remote gaming duty, which would increase to 50% under the IPPR’s proposal.
Double the Tax on Online Gambling Firms
The Social Market Foundation is another moderate think tank developing a plan to raise around £900 million by doubling the tax on internet gambling corporations from 21% to 42%. The Webb-funded SMF will presumably advise the Treasury to follow the lead of other countries, such as several US states, with far greater taxes on internet gambling than the UK.
In the past, when the Conservatives were in power, Treasury officials met with representatives from the gambling business to discuss potential broad changes that would streamline the industry’s tax system. Horseracing is particularly vulnerable since it largely depends on tax revenue and media rights purchases from the gambling sector for its financial stability. The Treasury declined to comment on the specifics of the budget.
Do you run a bookie business? It is vital to know the benefits of mobile marketing for a sportsbook. It is one way to bring in more players.
Sign up with 9DollarPerHead.com and launch your bookie career risk-free!