Casino News

Government apologises and reviews casino taxation

2007-09-12 15:54:43

The UK government has said it is reviewing taxes that are paid on player-to-player games in casinos and apologised after a mistake was made by one its spokesmen.

Policy-makers hope the review will clarify the relationship between taxes and gambling after a mistake was made by a former Treasury secretary who said that poker players pay gaming duty and VAT.

In fact, participation fees are subject to VAT but not gaming duty, unlike the bingo industry which is taxed twice.

Angela Eagle, current secretary to the Treasury, said that ex-secretary John Healey had made a mistake, reports Reuters.

"In fact the Finance Act 1997 does not apply gaming duty to participation fees for poker played in casinos, so participation fees for poker played in casinos are liable only to VAT," she pointed out.

Confusingly, the Inland Revenue's inspection manual says that betting and gambling are not classed as taxable trading activities "but an organised activity to make profits out of the gambling public will normally amount to trading".