The U.K. national budget announcement isn't due until March 2001, but bookmakers there are quietly cheering news that, as part of his budget announcement, Chancellor Gordon Brown may axe the betting duty charged on British punters' wagers.
The turnabout on betting duty was announced in Brown's pre-budget report issued Wednesday. (Readers can access the report on HM Treasury's website, http://www.hm-treasury.gov.uk/pbr2000/index.html) The report explained that it was the government's objective to "assess the scope for a modernization of general betting duty that would deliver a business environment in which the British betting industry can compete in both the domestic and international markets, taking full advantage of the opportunities offered by the development of e-commerce, while ensuring that the future revenue stream from betting is protected. The Government believes there is scope for a modernizing reform of General Betting Duty to deliver this objective."
The Betting Office Licensees Association welcomed Brown's assessment of how the betting duty affects high street bookmakers. "We welcome the government's recognition of the problem of offshore betting," spokesman Tom Kelly told the Sun, "and we are pleased it has taken on board the need to give punters a better deal."
British Horseracing Board Secretary-General Tristam Ricketts echoed this, saying "We welcome the
government's explicit acknowledgement that there is scope for modernizing the way in which betting is taxed in the U.K., which we have consistently said is vital if the growing threat of offshore betting activity is to be effectively addressed and revenues are to be protected."
Pundits estimate that tax-free betting via offshore betting services and Internet betting sites will cost the Treasury £20 million annually. The loss to the Treasury's coffers would likely be recouped, at least partially, through a proposed levy on bookmakers' profits.