UK LEGAL
New restrictions on bonuses and promotions
The Government has launched a consultation on a single tax for remote gambling, bringing together Remote Gaming Duty, General Betting Duty and Pool Betting Duty for remote operators into one tax. Northridge Law’s Melanie Ellis explains.
P
remises-based casino operators are already subject to a separate Gaming Duty, but this proposal will mean that GBD and PBD would be paid only by non-remote betting operators. The new tax for all remote operators will be known as Remote Betting and Gaming Duty (RBGD). This proposal has been on the cards for a while, so will come as no surprise. The aim of this measure as stated in the consultation document is to “provide tax certainty and increase simplification for remote gambling” and “create a simpler, streamlined system that is easier for operators to navigate”. However, if this comes at the cost of an increased overall tax burden, it seems unlikely to be welcomed by operators. New harmonised tax rate
18 MAY 2025
The key outcome for remote operators will of course be what the new harmonised tax rate for remote gambling will be. With remote betting operators currently paying a rate of 15% of gross profits and remote casino operators paying 21%, clearly a harmonised rate will represent a significant increase or reduction in tax payments for some activities.
The consultation does not include questions relating to what the harmonised rate should be, rather the rate will be determined and set by the Government as part of its Budget process. However, the document points to the higher costs faced by premises-based betting operators (including business rates and energy costs) and notes that overseas-based remote
betting operators also do not pay UK corporation tax. It also notes the increasing market share enjoyed by remote operators and the 208% increase in remote gambling GGY over the past decade.
Realistically, a harmonised rate at or close to the current 21% for remote gaming seems most likely, representing an increasing tax burden for remote betting providers.
TREATMENT OF FREE BETS, FREEPLAYS AND PRIZES The appropriate and consistent treatment of free bets, freeplays and prizes is a key consultation topic.
At the moment, free bets are included in the calculation for GBD, so that the amount
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