Interactive
UK – Tax from online gaming more than doubles in three years
By Phil - 2 May 2019
HM Revenue & Customs has revealed that last year, it received £529m in UK Remote Gaming Duty.
Income from online gaming provider profits has risen dramatically in the last three years, from £249m in 2015; an increase of £280m.
It’s also expected to rise again in 2019, as the tax charged by HMRC on Remote Gaming providers has now risen from 15 per cent to 21 per cent as of April 1 2019; the highest amount of tax paid out across any betting and gaming outlet, including the lottery. The tax is charged as a percentage of profits, calculated as stakes received less winnings paid out.
Addiction experts at UKAT, who has analysed the recent HMRC report, warn that as the Government reap more and more money from gaming providers, they’ll become ‘blinded by the cash’ and continue to avoid any real prevention or treatment measures to those struggling with gaming addiction.
Eytan Alexander, himself a recovering addict and CEO of UKAT, said: “Slamming high tax bills to online gaming sites is not going to fix the problem we already have in this country. High tax bills might force some platforms to shut down, which will marginally reduce the number of sites people can game on, but ultimately what’s happening here is that the Government are making millions from online gaming providers, without any desire or intent to re-invest some of that money into helping prevent and treat gaming dependency and addiction.”
Last year the World Health Organisation added ‘Gaming Disorder’ to it’s 11th International Classification of Diseases (ICD), classifying it as a mental health disorder.
UKAT’s admissions for gaming addiction have rocketed in the last three years, from just seven patients in 2015 to 22 last year, a 214 per cent increase and from 16 in 2017, an annual rise of 37 per cent.
The report by HMRC also revealed the total amount of tax received in 2018 from all Betting and Gaming Duty Receipts was £2.938bn; £123m more than they did the year before.
