The UK chancellor, Philip Hammond recently announced sweeping increases on tax rates paid by offshore online gambling companies. The taxes will affect many software groups, including the Isle of Man-based Microgaming.
The government will be increasing remote gaming duty paid by these operators who offer online games such as slots, blackjack and roulette. The UK government hopes to raise over one billion pounds over a five year period that it says is needed for the country’s budget.
Late last month, the government said that the Remote Gaming Duty would be hiked from the current 15% to 21%. According to an announcement: “The intention to raise the rate of RGD from 1 October 2019 is being announced at Budget 2018 to give remote gaming operators sufficient advance notice of the increase.”
The new duty will be chargeable on profits from remote gaming from October 2019 and going forward. The government will introduce legislation in its Finance Bill 2018-19 which will amend section 155(3) of Finance Act 2014.
Microgaming provides software to scores of online casinos that have a strong presence in the UK gambling industry. It is hoped that the tax hikes will not have too much of a detrimental affect on online casino operators that are based outside of the UK. What is sure is that Microgaming will continue providing its best titles and software to online casinos that carry its game.
