UK Gaming Tax on a rise

So, its time to empty the wallets as the UK government lately introduced tax rates as much as 15% for online gaming companies with the basic objective of bringing the off-shore companies to onshore.

Mark Summerfield, Head of Gaming at KPMG, remarked – “The Remote Gaming Duty (‘RGD’) rate of 15% is considerably higher than the industry hoped for and it is difficult to see any operators moving onshore and volunteering for it." He further added that the government’s move to bring the internet gambling companies back to onshore would probably fall short. The online operators partially based in the UK will have to keep a watchful eye on the location of their gaming equipment to escape from paying duty.

This move by the government is likely to affect all the established online casinos including those as well that are considering bidding for the new casino licenses.

However, games like bingo, poker and betting exchanges will gain benefit over UK based conventional bookmakers and casino operators. This is because Value Addition tax (VAT) will not be charged on even the distant involvement fees on these games.

Experts say that UK bingo industry will possibly be dissatisfied by the Chancellor's last budget. They feel that the government has introduced an above limit tax rate.