UK Chancellor reduces free play tax expectations by 25%

UK-facing operators breathed a sigh of relief yesterday after the country’s Chancellor steered clear of hitting the industry with any new taxes, only delivering an update on a levy announced last year.

Delivering his annual Budget speech, Philip Hammond revised down the expected tax income expected from the soon-to-be-incorporated tax on gaming free plays, as announced in 2016.

The levy, which is due to come into force on 1 August, had been expected to raise £100m per annum, however, the Exchequer reduced that expectation to £75m in its first full year, rising to £80m in year four, after being warned operators would mitigate the tax by amending their marketing strategies.

Ahead of the annual Budget, operators had been concerned the Chancellor would once again look to the gambling industry to raise tax revenues, with a hike on FOBTs and the introduction of the Point of Consumption tax two recent examples.

One operator told EGR Intel it was “always concerned” the industry could be hit with additional taxes, while another said they were “nervous” ahead of the speech.

However, with the industry left alone this year, operators were able to breathe a sigh of relief at the outcome.

While most firms refused to comment on the record about the Budget outcome – one noted the ongoing Triennial review as a reason to stay schtum – William Hill said it was “relieved” following years of tax hikes.

“The industry has been hit with significant additional taxes in recent years and with the Levy extension and tax on free wagers already in the pipeline we are relieved that there hasn’t been further tax hikes,” a spokesperson for William Hill said.