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RGA WEIGHS IN ON UK POC IMPLEMENTATION
Monday December 01,2014 : RGA WEIGHS IN ON UK POC IMPLEMENTATION
Significant economic impact
The implementation today of the new place of consumption tax levied by the UK Government on online gambling operators elicited a response from the Remote Gaming Association (RGA) who said: “The economic impact of this change on the industry is significant”.
Operators, who are required to hold a UK Gambling Commission licence if accepting business from UK customers, are now liable for a 15 percent tax on gross profits involving UK-situated customers irrespective of where the operator is physically operated.
The new tax measure is estimated to contribute an additional GBP 300 million per annum to HM Treasury’s coffers.
Clive Hawkswood, Chief Executive of the RGA said the association will continue to engage with the Treasury to argue its point that “any rate above 10 percent GPT is not sustainable in what is a very mature market where consumers already know what level of value and choice to expect.”
He also, however, accepted that HM Treasury and the UK Government are unlikely to consider any amendments to the rate until the new regime has “bedded down”.
“The online gambling industry is a UK success story and already contributes significantly to UK PLC in terms of jobs, marketing spend and corporate taxes. We do not want to see the Government’s plans put these companies and their investments in jeopardy,” Hawkswood said.
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