|Thursday, March 23, 2006|
|Little change in UK gaming tax|
On 22 March, Finance Minister Gordon brown presented the state budget, that runs from April 2006 to April 2007. The budget did not include any changes to the taxation of betting and maintained the preferential VAT treatment for race horse owners:
Equally important for the racing industry in the UK could be the introduction of a tax on electronic fixed-odds betting terminals (FOBTs). From 1 August, bookmakers will have to pay an annual licence duty of UK£1,965 per machine, on top of VAT. There are about 20,000 machines across the UK. A consumer shift from FOTB’s to live betting is therefore likely. This could have a positive effect on racing, as FOTBs do not contribute to the racing and live betting does.