Uk Gambling Industry Revenue
- Uk Gambling Industry Revenue Definition
- Uk Gambling Industry Revenue Commission
- Uk Gaming Industry Revenue
The gambling industry is growing in the United Kingdom (UK). The goss gambling yield (GGY) in Great Britain increased from roughly 8.4 billion British pounds in 2011 to approximately 14.4 billion. In the UK, the gambling industry is huge. In 2017, government revenue, i.e., tax, from the gambling industry, reached £13.8 billion. Ten years ago, gambling laws in the UK were liberalized. Since then, tax revenue from gambling has risen by 65%.
There’s no denying the fact that the gambling industry in the UK has transformed beyond all recognition over the past 20 years.
This period has seen huge market growth – owing in part to advances in technology – and major moves in legislation. Today, it’s quite clear that at a time of economic uncertainty for the UK, gambling is a sector it can depend upon for strong growth and revenue.
But it wasn’t always this way, and here we take a look at some of the key milestones of the past two decades. We’ll also look ahead to potential changes that may be on the horizon.
The 2005 Gambling Act
The last time there had been any significant legislation relating to gaming was back in 1845, when the Gaming Act made wagers unenforceable by law. The policy of the Act was to discourage betting, given the damaging social effect of gambling.
Unbelievably, there was no major changes in gambling legislation for over 150 years. Then, following the Budd Report of 2001, the UK government sought to introduce a new liberalised regulatory regime to make the gambling market more lively.
The Gambling Act was passed in 2005 to bring archaic legislation up to date. As part of sweeping changes, local authorities were to be responsible for granting gaming licences and industry regulator the Gambling Commission was founded.
The Act sought to:
- Prevent gambling from being a source of crime or disorder, being associated with crime or disorder or being used to support crime
- Ensure that gambling is conducted in a fair and open way
- Protect children and other vulnerable persons from being harmed or exploited by gambling
Among the more controversial changes was to allow the licensing of up to eight so-called ‘super casinos’ throughout the UK. Many opposed to the bill felt that it would encourage gambling so a compromise was reached by parliament that reduced the number to one super casino, to be built in Manchester. However, after Tony Blair stepped down as prime minister, this plan was also quietly dropped.
The 2005 Gambling Act was seen as forward-thinking as it explicitly covered online gambling – at the time very much in its infancy – and placed it under the same jurisdiction as the then-more popular forms of gambling.
The growth of online gambling
Despite an initially slow take up, the popularity of has grown exponentially in recent years as digital technology has kept up with consumer expectations. Today, online gambling brings in more than one-third of all gambling revenue and is the largest single gaming sector – according to the Gambling Commission.
And if you play online casino games regularly, that’s hardly surprising. As well as providing the opportunity to play your favourite games from the comfort of your own home, online casinos are also more immersive than ever. High-quality graphics, audio and video has attracted gamers in their droves – and some of them now even prefer it to the real experience of visiting a casino.
Technology has been at the heart of this progress. Faster broadband speeds and wireless connectivity meant that the games that could be played almost anywhere and at any time of day or night.
It’s also opened up the possibility of one of online gambling most popular phenomena – live casinos. Live casinos connect online players with real-life dealers in real time, bringing the casino experience to their living room – or wherever they are, using any device. Plus, it provides the opportunity for gamers to talk to each other through their headsets, like they would in a land-based casino.
The leading online players
With so many online casinos in operation today, it’s easy to forget that in the beginning there were just a few brands bold enough to experiment with virtual gambling.
Many of the original operators fell by the wayside, but others like Casino-on-Net thrived. This small fledgling outfit was founded in 1997, but went on to become one of the most successful and recognisable gambling brands – complete with a range of engaging slots, classic casino games and live casino options. If you want to see what it’s like to play there today, visit 888 online casino.
The burgeoning popularity of online casinos, which is attracting more and more players to the market, has helped usher in another groundbreaking piece of legislation – the Gambling (Licensing and Advertising) Act 2014. This introduced the ruling that all operators, wherever they were based in the world, would have to have a UK operating licence to be able to operate in the country and advertise their services.
The politics of gambling
There are voices out there right now that believe that the gambling industry as a whole has enjoyed too much freedom over the last 20 years and that the time may have come to pull back. In the last few weeks, the subject of the Fixed Odds Betting Terminals has hit the headlines and even led to a ministerial resignation. These machines are said to generate much of the profits for betting shops and currently have a single bet limit of £100.
The government had pledged to cut this to £2 by the autumn of 2018, but this has now been put back until 2019. Conservative MP Tracy Crouch felt so strongly about the delay that she felt stepping down as minister made a strong enough statement.
On the other side of the political divide, the Labour Party has pledged that if they come to power they will outlaw all gambling advertising on TV while the match in question is still in play, impose a compulsory 1% levy on all gambling yield and ban the use of credit cards to pay for bets.
The gambling industry, which generated £13.9 billion in revenue between 2017 and 2017, has very strong lobbying presence so these are changes that would be certain to be challenged. The fact that gambling is such a popular pastime also means that public support for these measures could be limited.
A look to future prosperity
One thing’s for sure – the gaming market is going nowhere. With revenues of $525 billion expected by 2023, the industry is growing at a rate of 4% year on year.
So, while we’ve undoubtedly come a long way in the last two decades, it seems very likely that we still have much further to go. And with this level of momentum behind the industry the sky really could be the limit.
Whether you gamble no more than a few quid per year or are an internationally known poker player, the United Kingdom is a great place to call home. Not only is gambling completely legal and fully regulated in the UK, but you’ll be able to keep whatever you win. Although it might seem hard to fathom, gambling winnings are tax free for players in Scotland, Wales, Northern Ireland, and England. As you might expect, HM Revenue and Customs have no reason to cry poor, as they claim a sizable share by levying duties on gambling operators. Keep reading to learn all about the tax situation in Britain.
Is Gambling Taxable In The UK?
No, gambling is tax free in the UK. While players in some countries such as the USA, France, and Macau have to deal with gambling taxes between 1% and 25%, bettors in the United Kingdom have the privilege of keeping the entirety of their winnings. As a matter of fact, both online and offline gamblers in Britain don’t have to waste their time thinking about taxes. If you’ve been gambling for a while, you might recall dealing with betting duties years ago, except Gordon Brown, who was Chancellor of the Exchequer at the time, scrapped that tax in 2001. Thanks to the sudden rise and perceived threat of offshore betting earlier this century, the government was effectively forced to enact several changes. Yet this move was just one of many important developments. The government also passed the Gambling Act 2005, established the UK Gambling Commission, and started regulating online casinos.
If you live in England, Scotland, Wales, or Northern Ireland, your gambling winnings are tax free whether you play live or on the internet.
Did you know the UK government makes a virtual killing from gambling? In the 2017-18 fiscal year alone, Her Majesty’s Revenue and Customs raked in £2.9-billion in gaming-related duty. Although that figure includes lotteries, betting, and live as well as remote gaming, that’s an astronomical amount. A great deal of that revenue comes from the 15% tax levy gambling operators must pay. While you don’t have to worry about paying taxes when you win or lose, the government does tax betting shops, poker rooms, casinos, and other related establishments on their profits. Even though players don’t pay these fees directly, in many ways they are built into the odds. Nonetheless, it’s nice that you can concentrate on playing your favourite games instead of dealing with complicated tax forms.
- UK players do not pay taxes on their gambling winnings.
- The previous betting duty was abolished in 2001.
- Gambling sites now pay a 15% levy on their earnings.
- The government netted £2.9 billion in gambling duties during 2017/18.
- HMRC draws no distinction between pro and amateur players.
- If you gamble outside of Britain you may need to deal with foreign tax laws.
- The current tax code applies to online and offline betting.
Placing Your Bets Offshore
If you’ve gambled online, you’ve likely noticed that the industry continues to evolve. That’s true whether we are talking about the quality of the games, technological aspects like mobile betting, or regulatory and tax issues. As you might know, many of the sites that operate in the United Kingdom are based offshore. Some of these offshore operations were originally based in Britain, but quickly realised they could reduce their tax burden by locating their servers elsewhere and incorporating in a tax-free jurisdiction.
In order to counteract these moves, the UK Gambling Commission now requires all sites that welcome British customers to be fully licensed, whether they are physically based in Britain or elsewhere. In addition, these sites must also pay the same 15% tax as their British counterparts. Of course, as a player you won’t have to deal with these taxes. Nevertheless, a level playing field reduces the odds of the government making changes that negatively impact bettors.
Are Professional Gamblers Taxed On Their Winnings?
No - HM Revenue and Customs do not make a distinction between casual and professional players. Even if this may be subject to change in the future, at the present time gambling isn’t a recognised trade.
If you are a professional poker player, chances are you’ve already consulted with an accountant. Even so, there are a couple of points to consider. If you play outside of Britain, you may have to deal with local taxes. For example, if you win money in Las Vegas you could be subject to a federal withholding tax, although you can often apply for a refund as a non-resident. Also, if you become a poker celebrity and get paid for public appearances or representing an online cardroom, you could be subject to taxes but not on your winnings.
Keeping Records of Your Play
Although you don’t need to declare your gambling income on your tax return in the United Kingdom, successful poker players and other professional bettors often maintain personal records of their wins and losses. While this might seem like a waste of time since your winnings are tax free, there are a couple of benefits to keeping some sort of performance log.
It’s always smart to know how much you actually spend and win while gambling. Don’t you want to know how much profit you’ve made after you factor in your losses and other expenses like travel, meals, and lodging? If gambling is your sole source of income, you could end up raising several red flags if you drive to the shops in an Aston Martin. Having gambling records will be ample proof that you aren’t hiding income from taxable sources.
Frequently Asked Questions About Gambling Taxation in the UK
How much are gambling winnings taxed?
Uk Gambling Industry Revenue Definition
Gambling winnings are not currently taxed in the United Kingdom. Instead, casinos and other betting sites pay taxes on their profits. Remote gaming operators currently pay a 15% duty. Unless you plan on operating a casino, this will be of little concern to you.
Is gambling income taxable?
If you are a resident of the United Kingdom, your gambling income won’t be taxed. Unlike other countries such as the USA, you’ll be free to keep whatever you win in Britain even if you are a professional poker player. At the same time, you can’t deduct any losses you might accrue.
How much money do you have to win at a casino to pay taxes?
It doesn’t matter if you win £20 playing fruit machines or £2-million in a poker tournament. Your winnings will be tax free if you live in Britain.
Are blackjack winnings taxed?
No - If you live in the United Kingdom, you won’t need to pay taxes on any money you win playing blackjack.
Are gambling winnings taxed in Scotland?
No - Scottish players can win big without worry about taxes. If you live or gamble in Scotland, you can keep whatever you win.
Will my winnings be taxed if I live in Northern Ireland?
No - You won’t need to pay taxes on your gambling winning if you are a resident of Northern Ireland.
Do I have to pay tax on gambling in England?
Uk Gambling Industry Revenue Commission
No - As a player, you are not required to pay tax on gambling winnings in England. The government does generate sizable revenue from betting, as casinos, bookmakers, and other licensed gambling operators do pay taxes on their profits.
Are gambling winnings taxed in Wales?
No - Gambling winnings aren’t taxed in Wales. You’ll be able to keep whatever you win whether you bet online or at a local venue.