TaxCorporate TaxOnline gamers ‘will stay offshore’

Online gamers 'will stay offshore'

Budget announcement of 15% tax rate will mean big online gaming firms will stay in Gibraltar

Britain is unlikely to become a serious player in online gambling, after the
chancellor announced a 15% gaming duty for betting websites in the Budget last
week.

Companies such as
Partygaming and
Ladbrokes have reportedly
made it clear that a rate of between 2% and 3% would be acceptable. Currently,
many are based in Gibraltar and pay little or no tax on their profits.

The government wants to make the UK a centre for the industry.

But Wayne Lochner, chief executive of betting exchange Betbrokers, told the
Sunday
Telegraph
: ‘The government seemed so far-sighted in viewing online sports
betting as a financial product and an industry of the future.

‘The operators, who pay 1% tax in Gibraltar, would have relished a return to
the UK where they could be part of an industry centre of excellence. Potential
revenue and jobs have now been lost.’

Further reading:

Read
the Sunday Telegraph story

Q&A: Martin Weigold, CEO
of Partygaming

Rosemary Thorne to quit
Ladbrokes’ CFO role

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