U.K. bookmakers' hopes for a lower betting duty were dashed today when the Treasury's new budget announcement made no such reference. Instead, the government is considering basing duty on gross profits and where the actual wager was placed, Accounting Web reported.
Currently, British punters pay a 6.75 percent tax on each wager placed.
"The racing and betting industries will be very disappointed that their strong pre-budget representations for a cut in general betting duty have fallen on dear ears." British Horseracing Board Chief Executive Tristram Ricketts said. "As a result of the Chancellor's failure to take immediate action, competition from off-shore operators will grow further - and grow quickly. The Exchequer, racing and the domestic bookmaking industry will all be hit where it hurts--in the pocket. … We nevertheless welcome the government's decision to consult on the need to replace the present duty structure and look forward to participating in that process."
"It's not the cut we were hoping for," a Betting Office Licensees' Association spokesperson told Accounting Web, "but at least the government accept that we do have a problem."