The UK government initiates discussion on a unified tax for remote betting activities.

The UK government is stirring things up in the remote gambling sector with its proposal for a single Remote Betting & Gaming Duty (RBGD) to replace the existing three-tax system. This revamp aims to simplify the tax game and make it more user-friendly for all parties involved, cutting down on complicated administrative requirements.

Here's a lowdown on the consulting chaos that's anticipated over the next 12 weeks, ending on July 21st. The government wants to get your two cents on the RBGD reforms, so they can hit the bullseye with their simplification strategies and bureaucratic friction reduction.

At present, the UK gambling scene is subjected to three different rates: Remote Gaming Duty (RGD), General Betting Duty (GBD), and Pool Betting Duty (PBD), which taxes remote activities based on operator profits (RGD at 21%), profits (GBD at 15%), and net stake receipts (PBD at 15%). The government has acknowledged that these rates are outdated and no longer in sync with the industry's evolution.

"It's high time the tax system caught up with the incredible growth and innovation in digital gambling," noted James Murray, exchequer secretary to the treasury, in a proposal document. The UK-facing remote gambling sector has grown exponentially over the years, and the three-tax system needs a makeover to match its dynamic, expanding nature.

The government believes that there's no solid rationale for remote activities to be hit with different tax rates and has invited industry insiders to share their thoughts on building an efficient tax framework. They're particularly interested in the basis for calculating said tax, scope, non-compliance penalties, treatment of freebies like free-play bonuses, free bets, and prizes.

Gambling has made a beeline for the digital realm, with remote gambling yield now at a whopping £6.9 billion per year, recording over 200% growth in the last ten years and 20% growth in the last five years. Speculation surrounding potential reforms in the 2024 autumn budget hinted at a possible restructure of the gambling tax system. Although the industry managed to dodge a tax hike last year, the government did reveal plans to consolidate the UK's gambling tax structure, streamlining the remote gambling scene.

The UK government's proposal for a Single Remote Betting & Gaming Duty (RBGD) in 2025 aims to simplify the tax structure for gambling stakeholders, particularly in the remote gambling sector, by replacing the existing three-tax system that includes Remote Gaming Duty (RGD), General Betting Duty (GBD), and Pool Betting Duty (PBD).
The government is looking to reduce bureaucratic friction and simplify the tax game by 2025, as it acknowledges that the current tax rates for remote gambling activities, which vary from 15% to 21%, are outdated and discordant with the industry's growth and evolution.
In light of the growing remote gambling sector, which currently yields around £6.9 billion per year and has seen over 200% growth in the last decade, the UK government invites industry insiders to discuss building an efficient tax framework, focusing on the basis for calculating said tax, scope, non-compliance penalties, treatment of freebies, and potential reforms in the 2024 autumn budget.