Industry braced for 2019 Remote Gaming Duty rise
Remote Gambling Association says it has planned accordingly should 20% tax increase be implemented sooner than expected
The industry is braced for an early implementation of the rise in Remote Gaming Duty (RGD) and cuts to FOBT limits, the Remote Gambling Association (RGA) has said.
The dual change – described as a ‘double whammy’ for the industry when first announced – was initially scheduled for April 2020, with the RGD rise seen as a way to offset the loss of FOBT tax receipts.
However, the implementation date is now expected to be brought forward to 2019, according to multiple government sources cited by the Financial Times.
The Department for Digital, Culture, Media and Sport also confirmed it would “make the legislative change required as soon as possible”.
However, the RGA told EGR this morning it was prepared for the early implementation date and had “planned accordingly”.
“We have been in extensive talks with HM Treasury about the proposed increase in RGD,” RGA chief exec Clive Hawkswood said.
“They have been clear that this and the regulatory reforms to FOBTs would be undertaken at the same time and that a 2019 implementation date has always been an option for that. We have planned accordingly and await clarity in next month’s Budget.”
Regulus Partners estimates a 5% rise in RGD will create additional remote tax burden of c. £200m.