HM Revenue and Customs (HMRC) introduced a policy last year that would install a remote gaming duty to bring
freeplays in line with general betting taxation policies.
The duty was slated to be part of the Finance Bill but was omitted due to the short time ahead of the UK general election in June. New plans will introduce the tax on August 1, giving UK-facing operators limited time to
prepare working within the new tax regime.
The duty specifies
that freeplays will be considered taxable gaming payments every time they are played, whereas accumulated winnings cannot be deducted from the tax calculation until the player is set to collect winnings. HMRC noted the change would have an impact on around 130 bookmakers.
The new version of the Bill is expected to be passed later in late September or early October, as the industry awaits the results of the triennial review. The UK’s tax authority said that the additional tax would raise an extra £45 million in the first year, and expected to increase to £110 million by 2020/21.
Source: GMB / Innovate Gaming
