Several countries across Europe are considering revamping their gambling laws, and the UK is about to become one of them. Despite having a tight rein on its industry, the UK government has come under fire for its outdated gambling act, thanks to a recent report by Ernst & Young.
According to the accounting firm, the UK’s 2005 Gambling Act was supposed to create more opportunities in the gaming industry; however, the legislation has only hindered the growth of the industry. Thanks to steep taxes and other legislative measures, the casino gambling industry in the UK has suffered quite a bit over the course of the past few years.
One of the biggest issues has been with the tax scheme. The original casino duty was increased from 2.5% to upwards of 15%, marking at 500% increase in taxes for operators. High taxes have not only hindered the growth of land-based gambling venues, but have also forced online casino operators to move to offshore locations.
As such, the UK is losing out on a great deal of revenue, when the opposite should be happening, in theory. Ernst & Young suggests that the Gambling Act be revised to create a more profitable tax scheme that benefits operators in addition to the UK government.