UK Taxes on Gambling May Be Cut
Posted on March 27, 2013 at 12:03pm
In an unprecedented effort to attract new jobs to the UK and to help the stalled economy, the UK Government is considering cutting the tax on UK gambling revenue from 15 percent down to 10 percent. Like most other countries that have seen dips in their economies due to the recent global financial crisis, the UK is trying to find ways to increase tax revenue by attracting new business to the country. It is believed that cutting the gambling revenue tax will help to do this. The hope is that gambling businesses that were formerly based in the UK, but have moved because of high taxation, will consider coming back to the UK. This would help not only to boost revenue, but it would also help to bring new jobs back to the UK. Many jobs in the UK in traditional industries have been cut, so any increase in jobs would be helpful.
The online gambling industry has experienced amazing growth recently. It is one of the few types of industries that is experiencing growth. Recently, online gambling has grown by over 30 percent. This trend is expected to continue for at least the next several years. This phenomenal growth is largely attributed to increases in smart phone and mobile tablet use in the UK. Social gaming is incredibly popular, but the growth in mobile gambling has surpassed social gaming's growth. In fact, it was found recently that mobile gambling is the fastest growing form of gambling today. Smart phones such as Samsung's Galaxy, along with Apple's lines of iPhone and iPad products have contributed to this growth. Figures that have come in recently show that over 60 percent of UK residents own and use smart phones and that nearly one fifth of residents also have tablet devices.
The recent trend towards making casinos more smart phone and mobile device friendly should help to increase the popularity of using these devices to play in mobile casinos. Users love the portability of mobile devices that can be used anywhere. They are willing to try gambling on them when they're given good incentives to do so. Punters find that they no longer need to go to land based casinos, along with the expenses that entails. They don't need to pay for hotel accommodations, restaurant meals and other expenses to play their favorite games. They simply use their mobile device and they find that they can have a very similar casino experience by playing mobile games. By lowering taxes on revenue from online gambling, it is hoped to increase the volume of players and to increase the number of gambling operations that are based in the UK.
This trend would help to bring in more revenue, which the UK Government needs today. Countries simply cannot continue to run carrying such huge deficits. They need to find ways to bring in more revenue. Lowering taxes on mobile gambling revenue may turn out to be a smart move on the part of the UK Government.