Government to rethink gaming duty

The government has released news about new plans to review tax on player-to-player games in casinos and bingo halls.

 

The news comes after a long standing complaints from bingo firms and casinos that games have been double taxed. This problem became even more prominant in the minds of bingo operators after the recent smoking ban in England and Scotland.

 

Players are charged VAT on what is known as a "participation fee" and then pay tax again on prize money, if they go on to win.

 

Exchequer secretary to the Treasury, Angela Eagle, told the Commons that a number of errors had been made and expressed regret that players had been taxed unfairly.

 

"The Finance Act 1997 does not apply gaming duty to participation fees for poker played in casinos, so participation fees for poker played in casinos are liable only to VAT…I apologise…for this misunderstanding," she said.

 

Despite comments from a Treasury spokesman stating that there was no timetable for review, industry analysts are predicting changes will be announced in the pre-budget report due in October.

 

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