UK gambling firms bemoan budget tax deal
Britain's gambling firms and casino operators were left disappointed by
Wednesday's budget after Finance Minister Gordon Brown slapped higher tax on
large casinos and did little to tempt Internet gambling onshore. Internet
gambling firms looking to locate back to Britain from tax havens such as
Gibraltar and Cyprus were dismayed after Brown set the Remote Gaming Duty in
line with land-based bookmakers and bingo firms at 15 percent. Some had
predicted it would be as low as 2 or 3 percent. "The Remote Gaming Duty has
been set breathtakingly high, it will do nothing to attract the existing
offshore industry onshore and it may indeed have the contrary effect," said
BDO Stoy Hayward tax principal Martin Dane. "With the additional VAT and
corporation tax for most companies, it would be almost impossible for a
UK-based operation to compete with offshore businesses, especially those
located in other EU jurisdictions," said Remote Gambling Association
chairman John Coates.
Wednesday's budget after Finance Minister Gordon Brown slapped higher tax on
large casinos and did little to tempt Internet gambling onshore. Internet
gambling firms looking to locate back to Britain from tax havens such as
Gibraltar and Cyprus were dismayed after Brown set the Remote Gaming Duty in
line with land-based bookmakers and bingo firms at 15 percent. Some had
predicted it would be as low as 2 or 3 percent. "The Remote Gaming Duty has
been set breathtakingly high, it will do nothing to attract the existing
offshore industry onshore and it may indeed have the contrary effect," said
BDO Stoy Hayward tax principal Martin Dane. "With the additional VAT and
corporation tax for most companies, it would be almost impossible for a
UK-based operation to compete with offshore businesses, especially those
located in other EU jurisdictions," said Remote Gambling Association
chairman John Coates.
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