Online Gambling Revenue Rises in the UK

The UK Gambling Commission recently released a financial report that indicated that revenues from online gambling in the United Kingdom were responsible for a full 17 percent of the overall gambling market share across the country. It is important to note, however, that these figures were only taking into consideration licenses that were granted prior to the country’s new gambling act. That act came into effect starting with the tax year accounting for 2013 and 2014 revenues.

While these numbers indicate an increased popularity of online gambling sites across the United Kingdom, traditional neighbourhood casinos still accounted for the vast majority of all earnings across the gambling market.

When you compare online gambling numbers from the current year to the year immediately prior, online revenues rose a full 22 percent. That number is expected to rise even further and in a much more dramatic fashion over the next year, especially as online casino operators appeal new regulations that are being put into place by the UK Gambling Commission. These new regulations require new licenses to favor the new tax laws pertaining to gaming that have recently gone into effect.

When speaking on the subject of these new tax laws, Priti Patel, the Exchequer Secretary to the Treasury, indicated that they are designed to provide a much fairer tax system for all gambling establishment operators – both online and brick and mortar locations. Patel indicated that certain types of businesses have moved their operations to other countries in the past in an attempt to avoid paying United Kingdom taxes. If gambling operators wish to remain in business in the United Kingdom, they must pay a consumption tax of 15 percent.

Online sports betting also accounted for a substantial rise during the previous year, having generated revenues in excess of £25.4 billion. That number, in particular, accounts for 30 percent of the overall gambling market share in the UK today.