Remote Gaming Duty to rise to 21%
New tax, to be implemented in October 2019, expected to cost the industry more than £200m
Remote Gaming Duty (RGD) will be raised to 21% from October 2019, Chancellor Philip Hammond announced in today’s Budget.
The switch is at the lower end of the expected increase, with estimates ranging from 20-25%.
The rise on the current 15% rate, will be implemented at the same time as the cut to FOBT stakes to help make up the tax shortfall for the Treasury.
City analysts projected a 20% RGD rate would cost UK operators £180-200m a year.
William Hill’s share price was up around 3% on the news, with GVC Holdings up 2% and 888 Holdings up 1.2%.
The industry had previously argued an 18% RGD rate would have been high enough to make up for the lost revenue from FOBTs.
BREAKING – BUDGET 2018 – RGD 21%
Chancellor raises remote gaming duty #RGD to 21% from 15% in the #Budget2018.
The increase is intended to fill the £450m tax hole created by the reduction in maximum #FOBT stakes in betting shops. #gaming #tax https://t.co/E9i36Cweha
— Joelson Licensing (@JWLicensing) October 29, 2018
More to follow…