Call for simplification of UK

RNS Number : 6401H

Rank Group PLC

25 February 2010

 

25 February 2010

Rank calls for simplification of UK gaming taxation

The Rank Group Plc ('Rank') has today published proposals for the creation of a single regime of taxation for all betting and gaming activities in the UK.

In its publication entitled, 'Responsible Taxation - Fairness, Simplicity, Sustainability' Rank sets out the benefits of simplifying the current system, replacing the seven  different regimes of taxation with one common rate of duty:

·     Greater fairness - to remove of arbitrary distortions, particularly those which penalise UK domiciled companies and benefit offshore companies;

·     Greater economic contribution- to generate greater and more sustainable revenues for Exchequer and to stimulate job creation and other economic benefits;

·     Lower administration costs- to reduce the administrative burden of tax compliance and tax collection, enabling both companies and HM Revenue and Customs to achieve substantial cost savings;

·     Support social policy - to achieve alignment with the Gambling Act by ending the current discrimination against those forms of betting and gaming with the highest levels of customer protection.

Under the proposals, a 15% rate of duty would apply to each of the activities currently governed by the Gambling Act, including sports betting, bingo, casino games, card room games, amusement machines and football pools. The duty will be applied consistently regardless of whether the activity takes place in a land-based venue (such as a betting shop or bingo club) or via an offshore internet server.

Based upon the work carried out to date, the Exchequer could increase its tax take from the sector by imposing a 15% rate.

Ian Burke, chief executive of Rank said: "At the moment the gaming and betting activities of UK consumers are subject to a patchwork quilt of taxation, without any apparent logic or relationship to social policy.

"Some games are currently subject to a multiplicity of different tax rates, depending on where and how they are played.

"It is particularly concerning that the current system of taxation seems to be undermining the aims of the Gambling Act by imposing the highest rates of duty on those venues which provide the greatest degree of supervision and have the lowest rates of underage gambling."

Ends

For a full copy of 'Responsible Taxation - Fairness, Simplicity and Sustainability' please go to [www.rank.com/INSERT URL]. 

Further information:

The Rank Group Plc

Dan Waugh, director of investor relations                              [phone]

Financial Dynamics

Ben Foster/Marc Cohen                                                         [phone]

Notes to editors

1.   Gambling taxation

Under current legislation, there are seven different tax regimes covering the gaming and betting activities governed by the Gambling Act:

Activity	Duty	VAT
Sports betting
Off-course	15.0%	-
Internet (UK)	15.0%	-
Internet (offshore)	0.0%	-
Bingo
In a club	22.0%	-
In a betting shop (FOBT)	£2,215	17.5%
Internet (UK)	15.0%	-
Internet (offshore)	0.0%	-
Poker
In a casino	15.0%; 20.0%; 30.0%; 40.0%; 50.0%	-
Internet (UK)	15.0%	-
Internet (offshore)	0.0%	-
Casino games
In a casino	15.0%; 20.0%; 30.0%; 40.0%; 50.0%	-
In a betting shop (FOBT)	£2,215	17.5%
Internet (UK)	15.0%	-
Internet (offshore)	0.0%	-
Football pools	15.0%	-
Amusements
Amusement machine	£0: £830; £2,010 ;£2,215; £2815 per year	17.5%
Internet (UK)	15.0%	-
Internet (offshore)	0.0%	-

 

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