UK sets Internet gambling tax at 15 percent

[The Buzz]

Reuters is reporting that the UK will levy a 15 percent tax on Internet gambling revenues, which could effectively kill any movement to relocate those businesses from off-shore facilities, where taxes are in the 2-3 percent range.

http://uk.reuters.com/article/busine...1?pageNumber=1

[villa10]

Regulations are always followed with taxes.
I'm not surprised at all.
We'll see more ans more of this in many countries.

[matted]

How does that tax rate compared to other industryin the UK?

[TheGooner]

This is a special levy just for gambling company profits.

As they say it's exactly the same levy that is currently charged for bookmakers at 15%

Normal corporate taxes on profits are paid on top of that ...
so that's VAT at 17.5% and Main rate of 30%

Effectively thats about 50% of profits going in tax once the 15% special levy is added.

So you can pay 16-18% if you stay in Gibraltar or Isle of Man ... or 50% if you go to the UK mainland ...

Which do you think that they will choose ...

[pgaming]

Maybe the extra 15% levy maybe worth paying considering being regulated may add credibility thus profits? From a players perspective I would think this would be good thing.

Just a thought

greek39

[villa10]

Europe in general is a closed circle for any kind of exportations.
No matter if you're sending them commodities or online gambling.
Offshore model will not have too much chances to grow there.

[casinoranking]

15% seems pretty insignificant of a tax to be honest.

[TheGooner]

15% insignificant?
That's why you're not running the casinos then.


Gimme 15% off your bottom line - plus the increased 'standard" corporate tax.

[casinoranking]

I just know most land based casinos in Canada pay something closer to 75% plus corporate tax.

Hence my 15% is insignificant comment.

But I agree 15% of a lot of money is a lot of money. I can see people avoiding the uk because of this tax, but I can also see some going there for the trust factor, as the trust factor might outweight the loss of 15%.

[pgaming]

The trust factor with players just may pay for 15% levy?

sneak39

[codename]

this 15% tax will STOP a lot of offshore gambling companies wanting and actually poised to operate in the UK. UK regulatory framework is on the right track but the taxation has to be reconsidered in order to attract operators.

[Nandakishore]

This is a real surprise to me because I read in telegraph.co.uk a few days earlier that the British Chancellor Brown plans to introduce a 2-3 p.c. Remote Gambling tax to lure offshore gambling companies to get licenses in UK.

Nandakishore
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