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UK government Bingo Tax
Sunday November 24 ,2013 : BINGO BONANZA FOR BRIT GOVERNMENT
Rank group study says UK government could reap GBP 25 million from bingo alone in P.O.C. tax move.
When the new point-of-consumption tax on online gambling operators accessing British punters comes into effect in December 2014, the government could see its revenues from taxation on bingo alone soar from GBP 300,000 to GBP 25 million, says the online and land gambling group Rank plc.
By forcing online gambling operators seeking to access the UK punter to take out secondary licensing and pay taxes, the government can expect a windfall, according to a study carried out by Rank recently, which claims that Brit online bingo currently raises just GBP 300,000 a year in duty, whilst land bingo clubs cough up GBP 80 million a year in tax to the Treasury, at a taxation rate of 20 percent.
Proposals on the new p.o.c. law currently envisage a tax rate of 15 percent on all bingo, whether online or on the high street, and would result in a net gain of GBP 25 million, says Rank CEO Ian Burke, a consistent supporter of the point of consumption tax concept.
"In the run-up to the last general election, both Coalition parties supported a rate reduction for bingo, bringing it in line with other forms of betting," Burke told the publication This is Money.
"The Treasury’s plan to make remote betting companies pay gaming duty provides the government with its best opportunity to fulfil that pre-election promise."
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