Jeremy Hunt, the British politician serving as the chancellor of the Exchequer, said the government will soon consult on bringing remote gambling under one tax, as opposed to the three-tax structure currently in place. The announcement was made during the Autumn Statement, which is a government document featuring economic forecasts and tax spending proposals.
Hunt said that the government will consult “shortly” on proposals to change the structure of remote gambling taxation. The plan defines remote gambling as being “gambling offered over the internet, telephone, TV and radio.” The consultation would discuss getting rid of the three-tax structure, which is made up of remote gaming duty, general betting duty, and pool betting duty.
For the 2022-2023 tax year, remote gaming duty sits at 21% of remote gaming profits. General betting duty is 15% of net stake receipts, which is comparable to the gross profits from bookmaking; and pool betting duty is 15% of pool betting receipts.
The upcoming consultation has been announced amid the backdrop of the Gambling Act review white paper fallout. The document, which came out in April this year, outlines how gambling will be regulated in the UK in the digital age. The white paper proposals are being considered by the GB Gambling Commission, whic opened its consultation process on the proposals in July.
This first round looked at financial risk and vulnerability, online game design, enhancing consumer choice on direct marketing, and improving age verification at land-based venues; and closed in October. Mandy Gill, director of compliance at the Commission, said that over 3,000 submissions were made in total.
The next round of consultations will consider seven topics over 12 weeks. According to Tim Miller, Executive Director of policy at the Commission, it is set to close in February or March. The next round will consider the possibility of opting in for online bonuses and other offers, as well as how penalties are worked out.