Choose an online casino in which to play

Online casino and more tax increases to hit the sector

By admin on 2014-04-09 12:32:51

In the light of recent reports of major concerns among chief executives of our leading bookmakers following the Chancellor’s budget announcements last month, here at onlinecasino.ie we have decided to use our regular online casino news feature this month to examine those concerns. Whilst not directly effecting the online casino sector of the gambling industry, the proposed changes to the tax regimes of the fixed odds casino games machines now installed in almost all the high street betting shops will inevitably have an effect on the profitability of the major online casino operating companies, and by implication their ability to invest. For those who are not familiar with the proposed changes the major one is an increase in the tax on these fixed odds casino games machines from 20% to 25%. This is estimated to be a tax hike of something like £80 million on the industry and has prompted a letter to the Prime Minister from all the chief executives of the major bookmakers stating that these changes in tax liabilities from the casino games machines on top of other recent increases hitting the gambling industry are ‘ simply unsustainable’. The chief executives, who include Richard Glynn of Ladbrokes and Ralph Topping of William Hill claim that the inevitable cumulative effect of these tax changes will be the closure of hundreds of betting shops across the country. Certainly shareholders in these major companies have taken fright and more than £ 1 billion has been wiped off the value of William Hill, Ladbrokes and Paddy Power since the budget speech. There is even talk of another clampdown on these casino games machines with the number of machines allowed in each betting shop being cut from the current four, and a forced reduction in the maximum stake and the jackpot. The anti-gambling lobby seem to be on a winning streak whereas those people employed in the gambling industry are being ignored.