Sunday February 21,2016 : IMPACT OF U.K. GAMBLING TAXES WILL BECOME APPARENT THIS WEEK
Corporate reports expected to show the financial impact of taxes on FOBTs and online gambling.
Corporate reportage from major UK bookmaking firms Ladbrokes and William Hill this week will illustrate the impact of government moves on fixed odds betting terminals and the ‘place of consumption’ online gambling tax, the Sunday Times noted over the weekend.
The expectation is that profits will be badly impacted by government moves to limit the number of FOBTs in each betting shop, and tax the profits from these lucrative machines at 25 percent, along with the first full year of new online gambling taxes, which include a 15 percent levy on profits.
It is anticipated that Ladbrokes will report a statutory loss after taking a huge write-down on the value of its betting shops and paying an extra GBP 40 million in taxes last year, whilst William Hill is expected to report a 22 percent decline in full-year pre-tax profits after paying an extra GBP 87 million in tax last year.