The UK government has proposed a new RET gambling levy. To increase revenue in the country, it will be applied directly to the gross income of bookmakers. More precisely, the rate will probably be a 1% taxation.
The main change in the betting industry is replacing the voluntary fee system with this mandatory fee, which could generate around £100 million/year. In this sense, the objective is clear: make all companies in the betting segment equal, making them all pay the same tax rate. Read the article to learn more information about this news.
Transition from Voluntary to Statutory Levy
The current UK system allows bookmakers to pay different levies. Because it is voluntary, some operators choose to allocate a tiny part of their winnings, harming players and even competitors.
However, with a mandatory contribution system, this will completely change. Regardless of size, internal policies, or time in operation, all bookmakers must pay the appropriate fees. The value is not identical for everyone but is calculated according to annual income.
Levy Rates
The proposal also offers the possibility of applying different contribution ranges depending on each company. For example, some operators have a fee of just 0.4%, while others will pay the original 1%.
This vast market has completely different companies offering similar services, so the special commission approaches online betting sites differently than traditional lotteries, which have existed for hundreds of years. It also considers other types of taxes, specific policies, and fines or other charges.
Allocation of Funds
One of the main problems in this area is the allocation of funds. From a legal point of view, the main beneficiaries must be the players, especially those who have health problems caused by betting. Because of this, another important change will be the direct distribution of proceeds to the NHS and UK Research and Innovation (UKRI).
The Gambling Commission plans to distribute such without any intervention from the betting industry. Even large and traditional betting houses won’t be able to give an opinion or prevent this money from being used in favor of players.
Furthermore, a large increase in investment in the healthcare system is expected, with the following benefits:
- Opening of new exclusive clinics for the treatment of gambling addicts;
- Prevention and control policies;
- New automatic limiting and exclusion methods.
All of these can help even before the players suffer any irreparable loss. Fund allocation varies in each region, with distribution based on local demands for England, Scotland, and Wales.
As a more distant goal, there is still the desire to help loved ones who have been indirectly impacted by gambling addiction. It depends on studies and the approval of the new rate itself.
Support from the Betting and Gaming Council (BGC)
The Betting and Gaming Council is an entity that brings together more than 90% of betting, casino, and other related segments in the United Kingdom. With such importance, BGC will be one of the main ones impacted by the new rate.
The Council has been in favor of a healthy betting policy for a long time. This includes setting betting limits on betting websites, reporting losses and gains, partnerships with NGOs, and various other efforts.
Specifically regarding the new rates, the BGC clarified that it supports the change. It also suggests that the application is for any betting organization, such as the National Lottery and other equally traditional ones.
They proposed charging proportional fees for each company. As BGC knows the segment internally, the entity understands that this is the best way to apply a mandatory fee fairly.
The Council is a constant and impartial supervision, which must guarantee the correct payment of fees. Such supervision also protects the market itself, preventing larger operators from taking advantage of legal loopholes.
Potential Impact of Regulatory Changes on VIP Programs
For players looking for the best online casino loyalty programs, there may also be an impact on VIP programs. This includes applying fairer rules to this type of offer. Operators must encourage betting in a healthy way, whether through marketing or their internal rules.
For example, VIP programs that return part of losses may change, as they can harm bettors. With so many possible changes, wait for news and read reliable sources only.
