December 28, 2016 / by: Gray Peterson
The UK Gambling Commission (UKGC) has announced that all gambling operators licensed in the UK will have a new fee structure which is expected to be released on April 6th, 2017. The information about this new fee structure was posted on the Commission’s website after a consultative forum with the Department of Culture, Media, and Sports.
The new fee structure will see more than 1,900 companies benefiting from the new structure since their tax payments will be reduced. However, more than 75 gaming operators will have their taxes raised. Also, around 1,000 operators will experience a slight change or no change at all. The Department for Culture, Media and Sports is collaborating with the Commission to ensure that the fee is fully implemented. The two entities have been engaging in negotiations following the proposed changes n the Gambling Act of 2014.
The UK Gambling Commission believes that when the new licensing law and fee structure are implemented, they will help lower the overall burden on the UK gaming industry by 10%.
Under the point of consumption tax, online gambling operators will have to pay 15% based on their revenue. The complete fee structure is expected to be contingent upon the gross gambling yield of each operator. The Commission, however, revealed that all companies seeking to get their first license would walk away with a discount of 25%.