The government will legislate in Finance Bill 2018-19 to increase the rate of remote gaming duty (RGD) to 21% with effect from 1 October 2019
Currently, Remote Gaming Duty is chargeable at the rate of 15% of the gaming provider’s profits on remote gaming.
In May 2018, following a consultation on proposals for changes to gaming machines and social responsibility measures around gambling, the government announced that the maximum stakes on Fixed Odds Betting Terminals (FOBTs) were to be reduced to £2. To cover any impact on public finances Remote Gaming Duty will be increased to 21%.
The new duty rate will apply for accounting periods that begin on or after 1 October 2019 and will be chargeable on profits from remote gaming from that date onwards.
In 2019-20 this will raise £130m for the Exchequer, rising to £255m in 2020-21 and £265m in 2021-22.
Remote Gaming Duty applies to gaming over the internet, telephone, by television, radio or other electronic communications.
Report by Amy Austin