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BGC Warns Against New Gambling Tax Structure Proposed in Great Britain

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Prepare for a critical battle in the world of British gambling as the Betting and Gaming Council (BGC) sounds the alarm over a proposed gambling tax overhaul. This seismic shift, announced during the Autumn Statement by Chancellor Jeremy Hunt, has ignited fierce opposition from the BGC, labeling it a ‘Trojan Horse’ concealing a potential tax hike for the industry. Dive into the controversy as we explore the implications of this tax simplification measure, shedding light on its far-reaching consequences for various sectors, including horse racing. The stakes are high, and the BGC is demanding a rethink before it’s too late.

The British gambling industry finds itself at a crossroads as the Betting and Gaming Council (BGC) takes a resolute stance against a proposed gambling tax restructuring that has sent shockwaves through the sector. This tax overhaul, introduced by Chancellor Jeremy Hunt during the Autumn Statement, has become a contentious issue, with the BGC raising alarm bells and branding it a ‘Trojan Horse’ hiding potential tax hikes for the industry.

Currently, the gambling tax landscape in Great Britain comprises three distinct categories: remote gaming duty at 21% of remote gaming profit, general betting duty at 15% of net stake receipts (equivalent to gross profit from bookmaking), and pool betting duty set at 15% of receipts. However, Chancellor Hunt’s proposal seeks to replace this structure with a unified tax framework that covers all forms of remote gambling.

The Chancellor’s intention to redefine remote gambling encompasses activities offered through the internet, telephone, TV, and radio, and this proposal has triggered a significant backlash from the BGC. The council, which represents the interests of the gambling industry, has raised valid concerns regarding the potential negative impact of these changes, particularly on the realm of sports.

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One of the key areas of concern highlighted by the BGC is the potential adverse effect on horse racing. The proposed tax restructuring, if implemented, could place a heavy burden on this sector, potentially leading to reduced margins, fewer offers for punters, and diminished funding for sponsorship and promotion of the sport.

Michael Dugher, Chief Executive of the BGC, voiced his apprehensions over the proposed changes and called for a thorough reconsideration. He emphasized the precarious financial situation of horse racing, which relies heavily on betting operators for its prosperity. Dugher pointed out that the government’s actions, as outlined in a recent white paper, are already threatening the industry, making additional tax increases a significant concern.

Moreover, Dugher criticized the Treasury for proceeding with these proposals without consulting the Department for Digital, Culture, Media, and Sport (DCMS), the governmental body responsible for overseeing betting and racing matters. This lack of coordination raised questions about the government’s commitment to supporting the gambling industry.

Dugher expressed concerns that these tax simplification measures might serve as a facade for further tax hikes on businesses, potentially leading to job losses and reduced investment in the industry. The consequences of such actions could jeopardize the competitiveness of British horse racing on a global scale, putting its rich heritage and legacy at risk.

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It’s important to note that these tax changes will exclusively affect remote gambling, leaving land-based operators and their tax structures untouched. The BGC also previously criticized what it described as a stealth tax raid on casinos, which could cost the sector £5 million annually, related to the freezing of gaming duty bands.

Chancellor Hunt’s proposed tax restructuring comes amidst ongoing ramifications from the Gambling Act review white paper, published in April. This white paper outlines the future regulation of gambling in the UK’s digital age and includes several proposals currently under consideration by the Gambling Commission.

The industry’s response to these developments has been a mix of concern, opposition, and cautious optimism. With numerous proposals and consultations in progress, the fate of gambling taxation in Great Britain remains uncertain, with potential far-reaching effects on the industry and its various stakeholders.

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Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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SOFTSWISS Jackpot Aggregator Sees 2.6x Surge in Bets: 2023 Report

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In a dynamic year for the iGaming industry, the SOFTSWISS Jackpot Aggregator has released its 2023 report, offering insights into significant trends and achievements.

Notably, the report reveals a staggering 2.6 times increase in bets participating in jackpots, shedding light on the growing appeal of these mechanics among operators and players alike.

A Year of Remarkable Growth

Throughout 2023, bets participating in jackpots experienced consistent quarterly growth, witnessing a remarkable 165% increase from January to December. By the end of the year, the total value of these bets had surged to an impressive 6.396 billion euros. Moreover, the number of jackpot campaigns witnessed a substantial growth of 3.8 times compared to the previous year, totaling 230 campaigns.

Expanding Reach and Impact

One of the standout achievements of 2023 was the expansion of the Jackpot Aggregator’s footprint. The number of brands utilizing its jackpot solution tripled within the year, culminating in over 70 active brands by year-end. This surge in adoption reflects a heightened level of market trust and interest in the product.

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Introducing the Prime Jackpot Campaign

A significant milestone of 2023 was the introduction of the Prime Jackpot campaign, which debuted in Q4. This innovative feature garnered considerable attention and interest from players across various casinos. The Prime Jackpot campaign allows operators to participate in shared prize pools, ensuring that rewards are drawn from the collective pool rather than from a specific brand operator. This approach not only offers larger rewards to attract more players but also enhances player engagement and loyalty while optimizing operational costs for operators.

Insights from SOFTSWISS

Aliaksei Douhin, Head of SOFTSWISS Jackpot Aggregator, shared his insights into the year’s achievements. He emphasized the noticeable increase in clients and connected casino brands, as well as the growing volume and value of bets in jackpots. He expressed satisfaction in witnessing clients actively embracing the Jackpot Aggregator and recognizing the added value it brings to their brand operations. The solution empowers operators to provide players with enhanced gaming experiences and more enticing winnings. Client feedback is actively collected and analyzed to ensure clients have access to the most sought-after tools and mechanics.

Looking Ahead to 2024

In 2024, the SOFTSWISS Jackpot Aggregator is set to extend its reach to a wider spectrum of clients. This expansion will be guided by a customized approach, ensuring that each client can tailor the product’s capabilities to meet their specific requirements.

Meet SOFTSWISS at ICE London

The SOFTSWISS Jackpot Aggregator team will be present at ICE London from February 6th to 8th, 2024. They are ready to showcase their latest advancements and engage in discussions with existing and potential clients.

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About SOFTSWISS

SOFTSWISS is a renowned international iGaming company that offers certified software solutions for managing gambling operations. With a dedicated team of over 2000 employees spread across Malta, Poland, and Georgia, SOFTSWISS holds multiple gaming licenses and provides comprehensive iGaming software solutions. Their diverse product portfolio includes the Online Casino Platform, the Game Aggregator featuring thousands of casino games, the Affilka affiliate platform, the Sportsbook software, and the Jackpot Aggregator. In 2013, SOFTSWISS made history by introducing the world’s first Bitcoin-optimized online casino solution.

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