Exchequer confirms remote gambling tax hike

As expected, UK Chancellor of the Exchequer, Philip Hammond, has announced a hike in remote gaming duty from 15 percent to 21 percent (see previous reports) from January 2019.

“I can confirm that we will increase Remote Gaming Duty on online games of chance, to 21 percent in order to fund the loss of revenue as we reduce FOBT stakes to 2 pounds,” Hammond announced in  parliament today (Monday).

Gaming industry brokerage, RB Capital, predicts the tax hike will spark a second wave of large-scale mergers and acquisitions as soon as the first quarter of next year.

“Today’s rate rise will only mean one thing: that life will get tougher for smaller operators and they will either be forced to downsize UK operations, shift market focus elsewhere or sell to the highest bidder,” Julian Buhagiar, co-founder of RB Capital, said.

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