Regulation round-up 2 May 2017
The biggest regulatory news from the egaming industry in the last seven days (26 April to 2 May 2017)
UK free play tax dropped from government legislation
Levy likely to be delayed as plans to apply remote gaming duty to gaming free spins and bonuses omitted from Finance Bill
The UK Chancellor of the Exchequer has suspended plans to apply a levy to gaming free plays and bonuses, with the section referring to the tax omitted from the government’s latest Finance Bill, EGR Intel has learned.
The Bill was yesterday given its final reading in the House of Commons, as well as its first reading in the House of Lords, minus clause 67 which had in earlier versions detailed the levy – dubbed ‘PoC 2’ by the industry.
And a supporting piece of Finance Bill documentation confirmed the clause had been omitted by the Chancellor during the final Commons reading.
“The Chancellor of the Exchequer has given notice of his intention to oppose the questions that will be put from the Chair and that are listed below (with the effect that the provisions so listed would be left out of the Bill),” the supporting documentation read.
Reformed British racing levy comes into force
Operators taking bets on British horseracing will from today be subject to a 10% tax on profits from British customers after the reformed Levy system was finally rubber-stamped by the UK government.
The new system will see all operators, on or off-course or online or offshore, pay 10% of gross profits above a £500,000 threshold back into the British racing industry for the first time, rather than solely UK-based bookmakers.
The Levy, which recently received approval from the EU Commission, aims to secure the long-term funding of the sport and could lead to an increased pot of funds of around £90m a year.
Seven days in regulation:
Kindred chief makes case for a lower Swedish tax rate
The Swedish government must lower its proposed 18% tax rate if the soon-to-be liberalised market is to outperform its channelisation target, according to Kindred Group chief executive Henrik Tjärnström.
Speaking to EGR Intel this morning, Tjärnström described recommendations submitted by a recent government inquiry as a “step in the right direction” but believed its current 90% channelisation target, to be achieved within two years, should be set higher.
The figure was based on a proposed 18% tax on gross gaming revenue (GGR) as part of the country’s move towards a liberalised multi-vertical online gambling market, which if adopted could see a licensing process begin as early as next year.
Poll results: Readers unconvinced by Malta exchange plan
The establishment of a regulator-managed national betting exchange in Malta won’t help licensees manage risk, the majority of respondents to this week’s poll have said.
Following news the Malta Gaming Authority (MGA) was planning to set up a national betting exchange to help sportsbooks hedge positions and lay off liabilities, EGR Intel asked whether the product would actually provide such benefits.
And 61% of readers were unconvinced, stating they didn’t feel the exchange would help them manage their trading risk.