UK online gambling operators catch a break on freeplay tax

UK online gambling operators caught a break this week after the government decided to revise its plan to tax online casino and bingo freeplays.

In March, Chancellor George Osborne announced the end of the exemption that online casino and bingo operators had enjoyed from the 15% general betting duty imposed on free or discounted online sports or race bets. The change is due to take effect on August 1, 2017.

Operators were up in arms over the plan, coming as it did on top of the 2014 imposition of the 15% online point of consumption tax on gambling revenue. Bookmakers with retail betting operations also saw their Machine Games Duty increase from 20% to 25% that year.

On Monday, Her Majesty’s Revenue & Customs (HMRC) released the summary of its technical consultation with online operators regarding the free play tax. The consultation received 10 responses from online operators, three from advisors or tax representatives, and one from the Remote Gambling Association (RGA).