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New taxation for online gambling could be bad news for Island firms

UK government plans to impose a new taxation regime for online gambling will leave Island firms facing higher costs and more administration.

That's the verdict of a KPMG report commissioned by the Remote Gambling Association.

The UK Treasury last year announced plans to tax online gambling on a place of consumption basis at 15 per cent. At present tax is applied at the source of the bet - where the operator is based. 

A detailed report on the implications for the industry has just been produced by KPMG's economics research team.

It means Island based e-gaming firms with UK customers, and those which advertise in the UK, will in future need a UK gaming licence.

KPMG's director of e-Gaming Russell Kelly says firms will be forced to absorb extra costs when the profitability of a bet is taxed in the UK:    

 

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