The UK government announced at Budget 2016 that it would align the tax treatment of free gaming subject to Remote Gaming Duty with the treatment of free betting within General Betting Duty (GBD). HM Revenue and Customs open a new consultation that seeks to gather information about how this change should be made, and whether the draft legislation will deliver the intended change.
The gambling industry is innovative and constantly evolving. Most gambling operators use a range of promotions and offers such as discounted or free stakes (‘freeplays’) as part of their customer retention and acquisition strategy.
Remote gaming operators currently benefit from a more generous tax treatment of freeplays in Remote Gaming Duty (RGD) than is the case for operators offering free bets on sports like football and horse racing in General Betting Duty (GBD). The government therefore plans to amend the tax treatment of freeplays in RGD to bring it into line with the tax treatment of similar free bets in GBD. This consultation document explains how the law will be changed to align the duties and seeks to gather information about how this change should be made, and whether the draft legislation will deliver the intended change. This consultation presents an opportunity for the industry to work with the government to ensure the legislation delivers its objective.