Online Casinos Hit Hard by British Tax Increases

Internet gambling firms had battled hard to get the VAT took off, but now they state the new level of tax on gross profits will hurt as much or more.
 British online gambling operators were stunned this week by government plans to substitute an increase in gross profits tax to replace the controversial value-added tax. Internet gaming companies that show Texas Holdem Games and Multiplayer Poker had fought hard to get the VAT took off, but now they say the new level of tax on gross gains will hurt as considerably or more.
The new plan specifically concerns online bingo rooms, as tax will surge from 15 percent to 22 percent on bingo. Slots and other gambling machines will see a 9 percent rise in tax, and casino poker rooms will face a new tax.
Rank Gaming Group, the UK’s largest Bingo operator, saw stock shares dive by more than 10 percent at the news. Rank also handles gaming machines and poker rooms, leaving it hit hard by all three tax modifications.
Rank officials say the alterations could cost them as much as $13 million annually, nearly a quarter of its expected $55 million gross gain.
Bingo operators felt UK taxation was unfair because they had to pay a gambling tax as well as the VAT. Taking off the VAT was assumed to give them an even competitive playing field with other gambling forms, but the hard new taxes will counterbalance the profits.

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