This is how much Tax the UK generates from online gambling revenues
Countries that chose to regulate the online gambling market instead outlawing this activity have benefited from a steady flux of revenue. The United Kingdom is a shining example of a nation where players can enjoy the thrills of online gambling legally, at licensed operators. The UK GC is the authority in charge of awarding the licenses and monitoring the activity of casinos and bookmakers catering to local players. Gaming is legal nationwide and punters can bet online, as well as in brick-and-mortar locations and the gambling market is constantly expanding. The tax that the UK generates from online gambling revenues is also growing and the most recent figures are nothing short of impressive.
Different duty categories apply
Online gambling for UK-based companies is subject to taxation, but the operators pay a different percentage of their winnings, based on their area of activity. Online casinos & Bingo sites found at bingosites.co.uk who provide their services over the Internet are subject to a 15% tax of profits. By comparison, lotteries are only charged a 12%, while offshore companies are subject to other taxes. Depending on the services provided, they are expected to pay theRemote Gaming Duty, the General Betting Duty or the Pool Betting Duty.
Just as the name suggests, theGeneral Betting Duty is the most common form of taxation, and it imposes a 15% tax on fixed odds and betting exchanges. Financial spread bets are only subject to a 3% duty and all other spread bets incur a 10% tax. The Remote Gaming Duty and the Pool Betting Duty is also 15% so gambling operators know exactly what to expect and benefit from the predictability. The best part is that players don’t have to pay any taxes on their winnings, so they get to keep everything they make.
Billions of GBP from online gambling revenues
The UK online gambling market is huge and each year it generates a lot of profit, which is subject to taxation. In 2017, more than £2.7bn whence to state coffers exclusively from online casino games and sports betting, significantly more than in the previous years. Remote gambling represents more than a third of the overall market, so it is also the main source of profits and tax money. Slots continue to top the charts with a gross gambling yield of £2.6bn in 2017, according to the UK Gambling Commission report.
The decision to regulate and tax remote gambling continues to pay off and the money coming exclusively from that source is inching closer to £1bn. As the market maintains its upward trajectory and new players join the online entertainment, these figures are only going to improve. The prospect of tax hikes is troubling for gambling operators, but the current ratio of 15% is reasonable. The money made by the government from taxing the industry is used to fund infrastructure projects and education.