Gaming Duty: increase gross gaming yield bands
Published 16 March 2016
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Who is likely to be affected
UK casino operators.
General description of the measure
This measure will increase the gross gaming yield (GGY) bands for gaming duty in line with inflation.
Policy objective
The measure will ensure that the gaming duty accounted for by the casino operators is maintained at real levels and does not increase simply on account of inflation.
Background to the measure
Gaming duty is paid by casinos on their gross gaming yield which can broadly be defined as the amounts staked by customers minus winnings paid to them. The duty is calculated by reference to bands of GGY. As the GGY increases, so the rate applied to calculate the duty increases.
The rates range from 15% which is applied to the first £2,370,500 of GGY up to 50%. The 50% rate applies to any GGY that exceeds the aggregate of the bandings to which the rates of 15%, 20%, 30% or 40% apply. If the bandings were not increased in line with inflation then over time more GGY would be subject to higher rates.
Detailed proposal
Operative date
The increase to gaming duty bands will have effect for gaming duty accounting periods starting on or after 1 April 2016.
Current law
Current law is contained in the table at section 11(2) of the Finance Act (FA) 1997. The GGY bandings have been revalorised on an annual basis since 1998. The bandings were last amended by section 60 of FA 2015.
Proposed revisions
Legislation will be introduced in Finance Bill 2016 to increase the GGY values in section 11(2) FA 1997. These bandings cover a six month accounting period and businesses liable to gaming duty are required to submit two returns: an interim return after three months and a full return at the end of the six month accounting period. Each time the bands for the six monthly accounting periods are increased the bands applicable to the three months period contained in the Gaming Duty Regulations 1997 (S.I. 1997/2196) are also increased to ensure consistency. The Gaming Duty Regulations will be laid after Royal Assent to Finance Bill 2016.
Summary of impacts
Exchequer impact (£m)
| 2016 to 2017 | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 |
|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil |
This measure is not expected to have an Exchequer impact.
Economic impact
This measure is not expected to have any significant macroeconomic impact.
Impact on individuals, households and families
The impact on individuals and households is expected to be negligible as these measures are not expected to have a significant impact on the availability, price and payouts in casino gaming. The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
This measure is not expected to have different impacts on any protected equality groups.
Impact on business including civil society organisations
There will be a negligible one-off cost to businesses who will need to change their systems to reflect the new GGY values. There are not expected to be any additional on-going costs. This measure is not expected to have any impact on civil society organisations.
Operational impact (£m) (HMRC or other)
There will be no significant operational impact to HMRC.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
This measure will be monitored through information collected from tax returns.
Further advice
If you have any questions about this change, please contact Maureen Jones on Telephone: 03000 588064 or email: maureen.jones2@hmrc.gsi.gov.uk