
RGD rise brought forward to April 2019 as government bows to FOBT pressure
Early rise in tax rate could cost the online gambling industry more than £100m


The rise in remote gaming duty to 21% will be implemented in April next year rather than October as originally announced in the Budget, the Department of Digital, Culture, Media and Sport (DCMS) has announced.
The change is being brought forward along with the cut to FOBT stakes, following a major backlash on the timeline in Parliament.
Culture Secretary Jeremy Wright confirmed the revised timetable today in a statement saying: “Parliament has been clear that they want this change to be made sooner and the government has listened.”
The change could cost the online industry some £100m+ in taxes, based on previous calculations.
Clive Hawkswood, chair of the Remote Gambling Association said it was unsurprising the DCMS has brought forward the changes, given the political climate.
Hawkswood added: “We have to be realists about this, but it remains frustrating that the impact on the online gaming sector of a changed timing seems to be getting no consideration at all.”
The news comes a day after almost 100 MPs signed a bill aimed at bringing forward the changes, including 10 members of the Democratic Unionist Party (DUP).
Addressing the cross-party rebellion against the FOBT implementation date, gaming consultant Steve Donoghue attacked the government for giving in to their “un-evidenced demands”.
Donoghue added: “The retail betting industry has been severely wounded, and it could be any sector next, almost definitely online but also bizarrely seaside amusements (Category D machines) may also be in the firing line for letting children ‘gamble’.”