Wednesday, March 21, 2007

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U.K. hikes, not drops, gambling levy

By Erin Warner

Expectations of a love affair between the British government and the online gambling industry were dashed by a lackluster budget announcement from Chancellor Gordon Brown Wednesday.

Internet gambling operators will have to pony up for a new 15% remote gaming duty, despite early speculation of a friendlier 2-3% tax. Some even forecasted a shift back to the U.K. from offshore gambling operations.

The levy will bring the online gambling industry in line with the rate of general betting duty, said Brown in his budget speech.

The government has also made changes to the gaming duty bands and rates, effective April 1, reports Forbes.

As of the that date, the rate of duty on the majority of casinos is 15%, up from the former 2.5% gaming duty rate. There is also a new top rate of 50% that applies to casinos with a gross gaming yield of more than $10 million per accounting period, said Forbes.

Related Article: U.K. May Offer Overseas Gambling Licenses

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