Brown set to announce budget gaming tax reshuffle
UPDATE: Gordon Brown has announced that the new Remote Gaming Duty will be at the highest level expected, at 15 per cent. The tax level for the new super-casino will rise from the usual 40 per cent for land-based casinos to 50 per cent.
With the expectation that Gordon Brown will announce new tax structures for betting and gaming firms in the U.K in what is set to be his last budget, there has been a mixed response from within the gaming industry.
It is no secret that the U.K government is attempting to lure back online casino companies such as 888.com and PartyGaming from their current tax havens such as Gibraltar, but some within the industry feel the incentives will not be enough.
The new Remote Gaming Duty, which is expected to be within the region of 2 and 15 per cent of revenue, will provide remote gaming companies with the respectability and kudos of being based in the U.K. Those companies would also be hoping the government would support them in their fight against opposition of online gaming from other countries.
However, some believe that those incentives would still not be enough. Companies would still have to consider the financial implications of relocating staff back to the U.K.
Mark Davies, Managing director of Betfair, believes that most well-known remote gaming companies wouldn’t consider moving to the U.K in order to verify their respectability.
On the other hand, land based casino operators will be nervously waiting to outcome of the budget. They can be taxed as much as 40 percent of their revenue, but with the U.K set to build a new wave of 17 new casinos in the country, that level could be raised further if the government want to get their hands on some extra tax.
Today’s budget is therefore significant to those companies wishing to bid for a licence to operate the new casinos with those submission guidelines soon to be announced.
Editor, Jackpot.co.uk - 2007-03-21 11:29:17