HM Revenue and Customs (HMRC) has published its national statistics update on duties generated by the industry’s seven different tax verticals – Bingo Duty, Gaming Duty, General Betting Duty (GBD), Lottery Duty, Machine Games Duty (MGD), Pool Betting Duty (PBD) and Remote Gaming Duty (RGD).
Reporting betting & gaming tax statistics for the six month period of April-to-September 2019, HMRC reports a provisional 0.5% increase in ‘industry receipts’ to £1.46 billion against 2018 comparatives.
A breakdown of tax duties collected by vertical highlights the changing regulatory dynamics between UK incumbents and the government, as the sector adjusts to a higher 21% (previous 15%) tax rate on Remote Gaming Duty (RGD) enforced on online casino disciplines.
Tracking against its 2018/19 financial year comparatives, HMRC details that RGD has increased by 26% to £330 million, with the department underlining that growth could be ‘potentially linked to the increased 21% rate’ triggered on 1 April 2019.
On a current basis, RGD increases see online casino taxes become the HMRC’s second-highest tax-generating vertical. It contributed a provisional 23% of industry of receipts, surpassing Machine Betting (MGD – 18%) & General Betting (GBD – 19%) share of gambling-related duties.
The growth and significance of remote casino duties are further underlined as HMRC have only tracked and recorded RGD as a unique industry vertical since April 2015.
RGD’s year-to-date growth is set against an anticipated 24% decrease in MGD provisional receipts to £270 million (2018: £358 million), likely to be attributed to the government’s enforced FOBTs £2 stake cut – also triggered on 1 April 2019.
Competing against ‘record year’ 2018/2019 financial comparatives featuring FIFA Russia 2018 metrics (total GBD £620 million), HMRC anticipates an anticipated11% decrease in betting duties to £274 million.
UK lottery duties are tracking at £471 million, contributing to 32% of industry receipts, with HMRC detailing that it’s provisional total’ for September 2019 recorded £91 million – the second-highest generating month since it began monitoring UK lottery activities in November 1994.
Further November regulatory updates saw the UK Gambling Commission (UKGC) remind licensed incumbents of their responsibilities in providing transparent reporting of contributions attached to the funding of research gambling harm prevention and treatment, as part of the Commission’s 2020 regulatory agenda.