How Much the UK Earns From Online Gambling
Betting over a football game is practically a part of English culture, needless to say, the gaming industry in the UK is huge and that means the government is obviously raking in some serious amount of money.
The Tax Breakdown
Before we head into the actual earnings, let’s look at how the UK taxes the online gambling sector.
You see, the online gambling in the UK is taxed under multiple categories. For instance, Bingo falls under what is called “Remote Gaming Duty” and profits for this form of gaming are taxed at a rate of 15%. The same applies to online casino gaming.
Lotteries are taxed under the “Lottery Duty” category at the rate of 12%. The rate applies to all stake money that is payable and played in a given accounting period.
When it comes to the services offered by non-UK operators, the taxation rates are a little different. Some of the taxes such companies are required to pay include Remote Gaming Duty, Pool Betting Duty, and Generqal Betting Duty.
General Betting Duty is basically the duty levied on the profits from pool or general bets on dog/horse racing placed by UK customers. It’s 15% for totalizator odds and fixed odds, 3% for financial spread bets, 10% for the remaining spread bets, and 15% of the commission that is paid to betting exchanges by UK customers.
Pool Betting Duty is the duty on profits made from bets that are not on fixed odds, dog racing, or horse racing.
Remote Gaming Duty is levied on the profits from games and bets by UK customers. The tax rate is 15%.
There is no tax levied on winnings currently, which means gamblers can keep every penny.
Now that we have a rough idea, it’s time to find out just how much the UK earns from online gambling.
Well, according to figures published by Statistica, the UK earned around £2.7 billion in 2017 alone. This was double the earnings the UK enjoyed a decade ago. Now, the figure isn’t based on separate calculations of on-premise bets and in-person bets. Even so, it is still a massive amount of money.
According to a UK Gambling Commission 2017 report, Remote Gambling is the greatest contributor, making up over 30% of the total market and yielding around £4.7 billion till date. Slot games are the most profitable offering under this category; they’ve managed to earn around £2.6 billion till date.
If we break this all down to a year’s earning, it comes down to around £705 million per year. That’s more than half a billion going into the government’s coffers just from Remote Gambling.