UK announces maximum stake reduction for FOBTs and huge tax increase

[The Buzz]

After days of speculation, culture secretary Jeremy Wright issued a written statement today, confirming that the stake reduction on fixed-odds betting terminals (FOBTs) would take place six months earlier than previously announced and go into effect in April 2019.

In addition, online casinos will see a tax increase from 15% to 21%, designed to make up the tax shortfall from the restrictions on FOBTs.

From The Guardian:

“The government has been clear that protecting vulnerable people is the prime concern, but that as a responsible government it is also right to take the needs of those employed by the gambling industry into account and provide time for an orderly transition,” the written statement said.

“Parliament has, however, been clear that they want this change to be made sooner. The government has listened and will now implement the reduction in April 2019.”

The Labour deputy leader and shadow culture minister, Tom Watson, said: “This climbdown shows the disastrous political judgment of Jeremy Wright and Philip Hammond.

“It’s very sad that it took an honourable resignation of a good minister and a cross-party revolt to achieve the blindingly obvious and necessary reforms to FOBTs.

“Whilst this is a personal humiliation for Jeremy Wright, this is a very good day for the many thousands of people whose families and communities are blighted by gambling addiction.”

Read more here: https://www.theguardian.com/uk-news/...-maximum-stake

[Cash Bonus]

Of course, the government wants this tax increase to come into effect sooner so they can start taxing people more