The UK is planning to expand its 10 percent tax on horseracing profits to all bookmakers, regardless of whether they are based in the country.
All bookmakers taking horseracing bets from UK gamblers would pay a 10 percent levy on gross profits above the first £500,000. The new tax plan could be in effect by April and will apply to all gambling businesses that accept bets on racing.
Speaking to the BBC, Nick Rust, chief executive of the British Horseracing Authority, said the expansion is “critical to the future health of British racing.”
The change, however, will have to pass European Union state aid rules, which could delay its implementation.
The new rules would also increase fines for firms that inadequately address problem gambling and money laundering controls. Firms would also face a higher risk of losing their UK licenses for offenses.
According to the Guardian newspaper, the UK Gambling Commission will unveil the new rules later this month. The commission’s chief executive Sarah Harrison has said UK firms can expect stricter enforcement of money laundering regulations. Harrison said the commission had uncovered “a lack of curiosity, and at worst, a leadership culture which puts commercial gain over compliance.”
Harrison has also said she wants to move away from negotiated settlements with betting firms over violations. Last year, the commission arranged voluntary settlements with bookmakers such as Paddy Power, which agreed to pay £280,000 after it was found to have encouraged a problem gambler until he lost five jobs, his home and access to his children, according to the paper.
Betfred also reached an £800,000 settlement in June after admitting it had failed to implement proper anti-money laundering controls and an £880,000 settlement with Coral in April over a problem gambler case.
The Association of British Bookmakers, said it welcomed any efforts to uphold high standards of integrity.
“As a sector, we are always ready to work with the commission to raise standards and adhere not just to the regulatory and legal frameworks in place, but to the commitments in our responsible gambling code which go beyond that. Clearly if there are failures that continue or are not addressed then it is right to take action,” the group said in a press statement.
