Thursday, March 22, 2007

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Gambling industry stinging from U.K. budget

By Erin Warner

Wednesday was an expensive day for British casino operators, who learned that the country's latest tax bump could cost them £100 million over three years.

The U.K. government released its budget yesterday and, despite speculation that it could be gambling-industry friendly, the financial plan actually dealt the market a blow.

The lowest tax rate for casinos was thrown out, while the most profitable businesses saw a hike to 50% from the 40% tax band.

Online gambling companies were hit with a 15% gaming duty designed to bring the business in line with bingo enterprises and bookmakers in the U.K.

The British Casino Association is speculating that the changes could cost operators £100 million over three years and will likely hit the smallest businesses hardest.

The Remote Gaming Association, representing the online gambling industry, said U.K. based operators won't be able to compete with offshore businesses. A spokesman for the organization told the Belfast Telegraph that the British government missed an opportunity to lead the way in international regulatory standards.

Other groups didn't express such disappointment following the budget. One PartyGaming, Plc. spokesman said the company wasn't surprised by the latest levy.

Related Articles:

U.K. Hikes, Not Drops, Gambling Levy
U.K. May Offer Overseas Gambling Licenses

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