Offshore iGaming Operators Get Targeted By UK To Increase Revenue

The United-Kingdom is thinking of targeting online gambling to increase their yearly revenues. This was brought up by the George Osborne, the Chancellor of the Exchequer, in one of his recent speech. He counts on implementing a consumption tax by changing the remote gambling rules. Their theory is that anybody in the UK that places a online bet, whether onshore or offshore, should be taxed at the consumption point and not the point of supply.

Other Duty Changes

He also announced that UK`s government have plans on increasing the rate of duty charged on slots machines that are played in betting shops. They count on bringing it up to 20% of all the net incomes.
A consultation period will probably take place shortly where Her Majesty`s Treasury will try to find a way to put the Chancellor`s plans into effect. If it does work, the government will increase the rate of remote duty within the end of this year.

Words Of George Osborne During Speech

Here are a few words that George Osborne said during his speech: “The current duty regime for remote gambling introduced by the last government was levied on a ‘place of supply’ basis.

This allowed overseas operators to largely avoid it and much of the industry has, as a result, moved offshore. Ninety percent of online gambling consumed by our citizens is now supplied from outside the UK and the remaining UK operations are under pressure to leave.

This is clearly not fair and not a sensible way to support jobs in Britain. So, we intend to introduce a tax regime based on the place of consumption, where the customer is based, not the company.”

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