Well-known British bookmaker Betfred's recent victory regarding the VAT on revenue from Fixed-Odds Betting Terminals (FOBTs) at land-based betting stores could set new limits on online gaming as well. The tribunal that took place some days ago found Betfred innocent against the claim that FOBTs in land-based and online casinos were not subject to the same tax as brick and mortar betting shops. In the same tribunal it was also found that the same logic applied to all other FOBTs including roulette, card games and virtual racing games.
The VAT was applied by HMRC on revenue deriving from FOBT starting from 2005 up to 2013. Following that the British government applied the 20% Machine Games Duty, which was then increased all the way up to 25% in 2014. The consequences mean that Betfred is expected to receive a £100m VAT refund, but that's not the end of it. If Betfred were to be refunded then the ruling would also have to be applied to its competitors, which would then bring the amount the government would have to pay out all the way up to £1.9b.
In an effort to make up for all the expected financial losses due to this incident, the government is anticipated to increase taxes on other gaming products. For example, last June the remote gaming duty went from 15% to 20% as part of the plan to balance the reduction the maximum stakes in FOBTs from £100 to £2. The reduction will probably take a few more years to be in effect (probably around 2020) as well as the subsequent appeal of the VAT by HMRC.
Why choose Betfred
- Respected bookmaker
- 50 years of experience in betting
- Impressive football payout
- Many betting selections
- Quality mobile app
- Live streaming & cashout available
- High winning limits
- Live support available 24/7
Betfred is a well known name among bettors in Britain as they have been around for the past 50 years. I mostly remember their betting shops in the UK, however, they managed to impress me with their nicely made website as well. The high odds on most football matches are a welcome addition and the fact that they are regulated by the UKGC and GLA certainly cannot be overlooked. Their variety of payment methods is sure to satisfy even the most demanding punters while the welcome bonus of £30 with a simple £10 deposit is quite impressive. A few more promotions, more languages and some Asian Handicaps would be a welcome addition, to an otherwise quality bookmaker.