The first full year after the Point of Consumption Tax (POC) has been introduced will see the UK Treasury break all previous known records on the collection of betting tax receipts.
The record now stands at £508m for 1994/5 with only £399m collected for 2013/14. A decline of 21%.
Clearly the drift towards the convenience of Internet betting has taken its toll on tax receipts which will all change in December 2014 when all bookmakers will be paying 15% of their gross profits on bets taken from UK customers. The UK Treasury estimates POC will bring in £300m in a full year taking the total tax take for betting only to £699m, a new record beating the previous high point by 37%.
Betting Duty is one of seven gambling taxes that include Pool Betting, Gaming Duty, Amusement Machine Licence, Machine Games Duty and Lottery Duty.
Betting Duty has not kept pace with inflation, had it done so £508m in 1996 would need £882m in 2013 at an average rate of inflation according to the Bank of England at 2.9% a year.
Add in the Fixed Odds Betting Terminals (FOBTs) which must be making a further contribution of £350m and the total tax take from betting shops and internet betting in 2014/15 will be about £1,049m which will far exceed the previous record even after adding inflation over the period. For the first time bookmakers will contribute more to the Treasury than the National Lottery.
Add to this the contribution to the horserace industry through the Levy and Harriet Harman the Deputy Leader of the Labour Party, calling for an extension of the Levy to all sports, plus a further claim on dormant betting accounts and you can see there is a real danger of the industry being milked to death!