Online gambling hit by 15 per cent tax

The industry reckons that the new remote gambling tax will deter online companies from setting up in the UK

Online gambling companies have condemned a new 15 per cent tax set by Gordon Brown in yesterday's budget.

Industry experts have warned that the new remote tax will deter online gambling companies from setting up in the UK.

The rate, which takes effect from 1 April, is in line with tax imposed on other forms of gambling. But it is much higher than the two to three per cent for which online gambling companies had lobbied.

John Coates, chairman of the Remote Gambling Association, said in a budget response statement: "The UK has effectively turned its back on the industry. It will now be almost impossible for a UK-based operator to compete with offshore businesses." 

A lower tax, he said, would have encouraged a more regulated and lucrative market, attracting offshore operators to the UK.

But a Treasury spokesman insisted that the rate simply brings online gambling into line with the rest of the industry. "The UK cannot and should not try to compete with tax havens," he said.