Government told to cut tax for gambling companies

Date: 14th August 2008

The government needs to put in place tax breaks if it hopes to lure online gambling companies back the UK, one industry expert has said.

In the Budget from April 2007, a new Remote Gaming Duty - set at 15 per cent of gross profits - was put in place for companies that provide remote gaming under licence from the Gambling Commission.

However, in a recent interview with the Telegraph, William Hill boss Ralph Topping said that tax cuts were needed in the current economic climate.

Now, Jake Pollard, editor of eGaming Review Magazine, has echoed Mr Topping's opinion, stating that many online gambling businesses were currently relocating offshore in a bid to beat high taxation levels.

"If the UK offered much better tax breaks competitive with offshore jurisdiction then I'm sure that a lot of operators would come back to the mainland," he explained.

"If you're a UK national and most of your family is based in the UK then some [businesses] are probably quite keen to return to the mainland but obviously tax breaks come before that."