UK Collecting More Revenue from Gambling Operations
Lawmakers have finally devised a way to collect the maximum amount of tax revenue from gambling institutions regardless of where they house their business operations. Effective immediately, new laws in the UK will enforce the collection of taxes from external gambling operations based on a brand new set of regulations.
Reasons Behind the Change
A treasury representative stated that the change was initiated in order to create a more conducive and equitable system of taxing that applies equally to physical casinos, online casinos, and mobile gambling operations. New laws also reduce disparity between traditional institutions, like horse racing, and modern alternatives such as online wagering. Another reason for the new tax to be based on where the end users ultimately partake of the games is to ensure that revenues are collected from outside companies offering gambling opportunities to residents of the United Kingdom.
Responsibilities For Providers
Although there was opposition to the new legislation, proponents were able to secure its swift passing by citing the potential of lost revenue and the strain being placed on casinos and gaming institutions within the homeland. Remotely operated companies will be required to register information about their sites and any relevant affiliations. Major conglomerates will be expected to pay taxes according to the countries where their services are offered. This could mean an extra expense for gaming companies, who are already required to obtain special operating licenses and permits to conduct online businesses.
Plausible Outcome Expectations
Considering the expansive growth in the gambling sector within the UK and abroad, the country could expect to generate a sizable increase in new tax revenue generated on behalf of operations outside of the country. Her Majesty’s Revenue and Customs stands to receive a significant amount of revenue that can be used for a wide variety of civil programs and special projects for needy municipalities.