Camelot seeks tax change from Treasury

Camelot has approached the Treasury about changing its tax regime in order to
put it more in line with other UK gambling and enable it to increase the money
it returns to good causes.

In an interview in Saturday’s Financial Times Camelot’s chairman,
Sir Peter Middleton, said he had approached the Treasury about the change, and
that a taxation change was one of his top priorities.

Camelot is currently taxed on a standard sales tax of about 12%, but
bookmakers and betting companies are taxed at 15% of gross profits – which means
they are taxed after they have paid out winnings to punters.

Sir Peter says this puts his group at a disadvantage. ‘Our borders are being
attacked by gambling businesses… by people who have a tax advantage,’ he said.

‘One of our main games is our range of scratch cards. Every time we bring out
a new one it is pirated and copied almost immediately. It is most unreasonable
to do that with us being at a tax disadvantage’.

He said that the Treasury had ‘listened’ to Camelot’s concerns and returns to
good causes would go up by about £50m a year if the company was able to adopt
the gross profits tax.

The lottery company is also currently preparing its bid for the next lottery
operator’s licence and is pushing for a longer licence term. Sir Peter said he
would like the current seven-year term to be extended to ’10 years’.