Taxing free bets gets back to the fore

29 Aug 2017

UK tax betsIncreased speculation had arisen back in July that the UK government intended to impose tax on free bets and related offers. Although this rumor had surely shaken the betting industry waters, it came in complete contrast to the Government 2017 financial bill that had already removed this ruling.

However, it seems there is no smoke without fire as the HM Revenue and Customs announced that it has actually decided to reintroduce the proposed tax on free bets.

Jason Fisher, Senior Associate at Wiggin LLP said: "About three weeks ago the Government issued a Written Ministerial Statement which confirmed the intention to legislate for all measures dropped from the pre-election Finance Bill, including certain provisions which will still commence as originally planned but be given retrospective application if relevant. HMRC has confirmed to the RGA that the free play provision is one such provision.”

The HMRC revealed that the tax will be enacted on 1 August 2017, under revised legislation. The expected profit from taxing free bets amounts to a sizeable extra £45m in the first year and is expected to be increased up to £110m by 2020/21.

Squire Patton Boggs Partner, Carl Rohsler stated: “The changes originally proposed in the earlier Finance Bill were shelved and have now been introduced post-election. It is said that they aim to create a more logical treatment of all forms of free bet (whether offered in the course of betting or gaming) which had previously been treated differently. The net effect is to increase the overall taxation burden on the gambling community. One major concession which was given as a result of government consultation was that free bets will only be taxed on the first occasion that they are offered, and not when they are “re-bet” during the course of play (as is usually a condition of the bonus offer). There has been little reaction from the gambling fraternity, but any change to the taxation structure is likely to put pressure on some operators to limit the use of free betting as a marketing tool. But given the extent to which free bets and bonusing is a necessary part of the ever –continuing struggle to attract and retain players, it seems likely that the larger operators will try to bear most of the burden and continue to offer free bet bonusing.”

Join and grab exclusive bonuses, daily offers and free bets!

Lay hands on exclusive daily bonuses for members only. These promos are limited and are not advertised on the website.

Yes, I have read the Terms & Conditions and I consent to receiving emails from Bookmakers.bet regarding betting promotions, betting guides and news.

BOOK SPY

The online sportsbook ComeOn has signed a partnership with the Canadian Premier League (CPL) to become its official sports betting and online casino p...

Read more »

Crypto-focused sportsbook and casino Stake.com has entered into a partnership with online gaming provider Aspire Global ahead of its launch in the Bri...

Read more »

With EURO 2020 starting today, Entain has made the estimation that more than 3 million people will place bets on the tournament, with almost 50% of UK...

Read more »

Former Liverpool FC and Republic of Ireland football player Jason McAteer has signed up with the online casino and sports betting operator LV BET as a...

Read more »

The well-known bookmaker Betsson, has struck a deal with the South American Football Confederation (CONMEBOL) to become the official regional sponsor ...

Read more »

Gambling operator William Hill has made the first steps of expanding into the LATAM gambling landscape, by going live in Colombia, building on its acq...

Read more »

Swedish operator Betsson Group has been granted online gaming and sports betting licenses by the Hellenic Gaming Commission (HGC), both of which will ...

Read more »

The renowned bookmaker Expekt, is the newest acquisition of the LeoVegas Group and will soon be relaunched to offer an improved sports betting product...

Read more »

Kansspelautoriteit (KSA), the Dutch gambling regulator, has entered a ‘cooperation agreement’ with the United Kingdom Gambling Commission (UKGC). The ...

Read more »

The renowned bookmaker STSBet has solidified its presence in international markets even more, after the launch of the revamped version of its website....

Read more »

LIST OF TOP BOOKMAKERS
22bet
  • 1.000+ live events daily
  • 95% payout on top leagues
  • Cashout
100% up to €122
1xBet
  • 1.000 live matches daily
  • Asian Handicap
  • 50+ sports
  • Code:BOOKSPY
100% up to €130
Stake.com
  • 95% overall live betting payout
  • 500,000 pre-match events/year
  • 100+ extra bets on top footy events
200% up to $1000
Rabona
  • 20.000+ live events per month
  • 95%+ on Top 5 leagues and NBA
  • Alternative handicaps on basketball
100% up to €100
888sport
  • 10.000 live events per month
  • 40+ sports
  • Bet Builder
  • Code:30FB
€30 Free Bets
Zodiacbet
  • 30+ sports
  • Asian Handicaps
  • Card and Corner bets
  • Code:ZB100S
100% up to €100
20Bet
  • More than 1,000 live events/day
  • 150+ markets in football
  • 40,000+ events/month
100% up to €100
Librabet
  • High odds on football
  • Huge variety of betting markets
  • Intriguing welcome bonus
150% up to €150
Bwin
  • 50+ sports
  • Cards & Corners
  • Edit my bet
High Odds
Bet365
  • Ideal for football lovers
  • 150+ extra bets on top leagues
  • Multiple Asian handicap markets
€25 Bet Credits
Rolletto
  • 95%+ on tennis
  • Alternative spreads on basketball
  • Asian View
120% up to €240
Mystake
  • Few country restrictions
  • 1,000+ pre match events daily
  • 400+ football markets
100% up to $500
Unibet
  • 250.000+ pre-match events/year
  • 10.000+ live events monthly
  • 96%+ on Asian Handicaps
100% up to €50
FEZbet
  • Cashout
  • Next Minute bets
  • Fast Markets
150% up to €100
Unikrn Sports
  • 1,000+ events daily
  • More than 25 sports
  • 7+ languages
200% up to $200
LATEST BOOKMAKER PROMOTIONS