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Online Gambling Tax Hike: Treasury's Own Goal?
29 Mar
Summary
- Tax on digital gambling revenue to nearly double from 21% to 40%.
- Buzz Bingo warns of operators going out of business.
- Higher taxes could push players to untaxed black market sites.
The UK Treasury anticipates raising £810 million through a significant increase in taxes on digital gambling revenue, with the rate set to climb from 21% to 40% on Wednesday. However, industry leaders caution that this fiscal measure might prove counterproductive, potentially shrinking overall revenue from the sector.
Dominic Mansour, chief executive of Buzz Bingo, Britain's largest bingo company, expressed concerns that the substantial tax hike could lead to operators ceasing business. He highlighted that regulated platforms may have to decrease prize amounts and worsen odds to compensate for the increased tax burden.
This adjustment could inadvertently benefit 'black market' betting websites, which operate outside of tax regulations and do not have the same restrictions on accepting credit cards as legitimate companies. Mansour stated that a tax rate of 30% would have been manageable, but 40% poses an unsustainable challenge for the industry.
