On 28 April 2025, His Majesty’s Treasury announced its long-awaited consultation inviting views on a new single Remote Betting & Gaming Duty (RBGD). This intends to replace the existing three-tier system of point of consumption taxes for online gambling in the UK.
The Tax Treatment of Remote Gambling consultation will consider various aspects of the new tax’s design including, among other things, the definition of ‘remote’ and ancillary services, and administration and penalties, as well as the proposed alignment on the tax treatment of free bets and freeplays, respectively.
The main objectives of the proposal are modernisation and administrative simplification. This could be seen positively in the longer term by investors as it may lower compliance costs, reduce the risk of inadvertent tax errors and make financial forecasting more reliable.
Conversely, the consultation will not be concerned with what a possible single rate of RBGD will be and therefore whether the new regime should be revenue-neutral or revenue-raising.
As such, there may be short-to-medium term share price volatility due to uncertainty about the final form of the new RBGD regime and its financial implications.
Any increase in the tax rate would potentially reduce profit margins for betting and gaming companies, leading to a decrease in share prices as investors adjust their expectations for future earnings. We do note, however, that while previous changes in gambling regulations have sometimes led to short-term declines in share prices, this has been followed by recovery as companies have adapted to their new regulatory environment.
The government is aiming to implement the new RBGD by October 2027, subject to the consultation process and the introduction of any necessary legislative changes. The initial consultation will run for 12 weeks and will close at midnight on 21 July 2025.
The post View from the City: Possible implications of remote tax harmonisation first appeared on EGR Intel.
KPMG director Hari Sharma predicts share price volatility for betting and gaming stocks as the industry awaits news of whether Remote Betting & Gaming Duty will be increased
The post View from the City: Possible implications of remote tax harmonisation first appeared on EGR Intel.