The UK Chancellor has used his 2018 Budget to increase the rate of Remote Gaming Duty (RGD) from 15% to 21% as he seeks to make up the tax loss from the reduction in maximum FOBT (B2) stakes.
Both measures, the RGD increase and FOBT stake cap will, come into force in October 2019, the Chancellor announced.
The Treasury’s forecasts estimate that the FOBT policy measure will cost the government GB£ 120 million 2019-2020, whilst the higher RGD rate of 21% will bring in GB£ 130 million.
For the period 2019 – 2024:
The total loss to the government in lower Machines Games Duty is estimated at GB£ 1.150 billion.
The total gain to the government in increased Remote Gaming Duty is estimated at GB£ 1.225 billion.
A net gain to the government of GB£ 75 million.