Bad UK budget news

[jetset]

It's early days, with the UK budget speech just delivered but the Remote Gaming Tax proposal does not look too good:

The Remote Gaming Association (RGA) has expressed disappointment at the 15% rate which the UK chancellor Gordon Brown has set for the new remote gaming tax.

The remote gaming tax rate has been set at the same rate as gross profits tax payable by UK-based bookmakers.

John Coates, RGA chairman, said the 15% rate means the UK government has “effectively turned its back on the industry”. “Under this regime, with the additional VAT and corporation tax for most companies, it would be almost impossible for a UK-based operator to compete with offshore businesses, especially those located in other EU jurisdictions.”

However, Clive Hawkswood, chief executive of the RGA, did say there was some good news for the industry from the budget. Contrary to some fears that the chancellor had plans to levy VAT on participation charges, such a measure was not introduced.

“The VAT issue was the scary one, but it has been put to bed for now,” said Hawkswood.

[Simmo!]

I guess they are caught between a rock and a hard place. If they make it lower, the bookies will be up in arms. Tricky.