The UK Chancellor George Osborne announced that operators who are licensed in the UK will in future be required to pay tax on all ‘free bet’ offers for online casino and bingo games.
Recently unveiled in the UK government’s most recent budget proposal, this requirement will come into effect on 1st August,2017.
If this motion is approved, UK operators will be required to pay a 15% general betting duty on all discounted and free online bets.
Currently casinos and bingo free bet offers are excluded from the 15% point-of-consumption tax placed on online gambling revenues, this bill was introduced in the UK during 2014.
The potential introduction of this new requirement, Mr. Osborne has opted not make changes to the regulations and tax laws that surround the much-criticised fixed-odds betting terminals (FOBTs).
Various sectors in the UK have voiced their opinion that these machines are allegedly addictive in nature, because punters able to place a maximum stake of £100 on machines.
The government has not budged from their position on the FOBTs, and have thus far resisted calls of cutting the maximum stake to £2.