15 Percent Remote Gaming Tax For UK Operators

When Great Britain revised the Gambling Act of 2005 to allow advertising of gambling companies based in qualifying jurisdictions (the 'white list'), the HMRC (Her Majesty's Revenues and Customs) also devised a 'Remote Gaming Duty' which would require online gambling operators to pay a 15% tax on all profits at the end of each reporting period.

To coincide with the implementation of the Gambling Act, the remote gaming duty will also go into effect on September 1, 2007. The 15% taxation will be deducted from each online gaming operators profits. This means all revenue earned for the accounting period, less the winnings paid out for that duration.

According to the HMRC, remote gaming is defined as any game of chance played for a prize through any type of remote communication device/technology; Internet, telephone, etc.

Every 'remote gaming' operation licensed by the Gambling Commission will be required to pay the remote gaming duty on all profits made, unless already subject to another UK gambling duty, or specifically exempt from gambling duties. The remote gaming duty will also be required for the illegal provision of remote gaming within the UK. Illegal provision would be defined, for example, as any company operating illegally, without an appropriate UK gaming license, or providing gaming where such activities are prohibited, such as in Northern Ireland.

Remote gaming operators licensed in the UK are strongly advised to register with the HMRC, claiming failure to do so will result in civil penalties as defined by the Finance Act 1994: section 9.