Gross gaming yield increase for Gaming Duty
Published 3 March 2021
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Who is likely to be affected
All 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.
Background to the measure
Gaming duty is paid by casinos on their GGY 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 £2,548,500 of GGY, up to 50%. The 50% rate applies to any GGY above £13,877,000. 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 2021.
Current law
Current law is contained in the table at section 11(2) of the Finance Act (FA) 1997. The bandings were last amended by section 91 of the Finance Act 2020.
Proposed revisions
Legislation will be introduced in Finance Bill 2021 to increase the GGY values in section 11(2) FA 1997. These bandings cover a 6 month accounting period and businesses liable to gaming duty are required to submit a return at the end of each period, using the GGY bandings to calculate their gaming duty liability.
Summary of impacts
Exchequer impact (£m)
| 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|---|---|
| - | 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 economic impacts.
Impact on individuals, households and families
This measure is not expected to have a direct impact on the availability, price and pay-outs of casino gaming for individuals. There is expected to be no impact on family formation, stability or breakdown.
Equalities impacts
This measure is not expected to have any impacts on any protected equality groups.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on approximately 50 casino operators by increasing the GGY bands for gaming duty in line with inflation. One-off costs include familiarisation with the change and will also include updating internal systems to reflect the new GGY values. There are not expected to be any continuing costs.
Customer experience is expected to remain broadly the same as this measure is only making a change to the GGY bands. This measure is not expected to impact on civil society organisations.
Operational impact (£m) (HMRC or other)
There will be no significant operational impact on HMRC. Minor changes to HMRC’s IT systems are expected to cost around £30,000.
Other impacts
Other impacts have been considered and none has 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 Anne Merrell on Telephone: 03000 588078 or email: anne.merrell@hmrc.gov.uk.