David Clifton comments in WOGLR on Budget announcements affecting the gambling industry

woglrDavid Clifton comments in World Online Gambling Report’s headline article on last month’s Budget announcements affecting the gambling industry.

With effect from 1 August 2017, the tax treatment of discounted and free gaming for remote gaming duty purposes will be amended to bring it into line with the treatment for general betting duty purposes of free and discounted bets. Coupled with the Gambling Commission’s continuing focus on free bets and bonus offers and what it considers to be other “aggressive” marketing incentives – see our recent iGaming Business article at http://cliftondavies.com/wp-content/uploads/2016/03/iGaming-Business-Marketing-incentives-and-inducements-to-gamble.pdf – this announcement will create further hurdles for operators insofar as player acquisition and retention is concerned.

The other Budget announcements that caught the gambling industry headlines related to an increase in gaming duty bands for land-based casinos and a timetable for replacing the current horserace betting levy with a new scheme by April 2017.

Notable by its omission from the Budget announcement was whether VAT is to be imposed on the use and enjoyment of advertising services in the UK by a gambling operator based outside the EU which, if imposed, could result in a significant irrecoverable VAT cost for such operators.

Download article PDF: WOGLR - March 2016