The amount of money raised by online gaming in the UK has increased, according to the latest HM Revenue and Customs (HMRC) gambling tax update.
HMRC has revealed the details of duty taken from the various UK gambling sectors. These show that gambling taxes for the period April to September increased by 0.5% on the same period last year.
The data also reflects the changes in regulation this year. The Remote Gaming Duty (RGD) levied on online gambling rose to 21% from 15%. This led to a 26% increase in RGD collected to £330 million.
This means that online casino gaming revenue is the second largest of the seven gambling duties collected by HMRC. It produced just under a quarter of tax revenue, overtaking Machine Gaming Duty (MGD) and General Betting Duty (GBD).
MGD revenue is predicted to fall due by around 24% due to the new lower £2 stake on Fixed Odds Betting Terminals (FOBTs) brought in this April. HMRC also predict an 11% drop in GBD compared to 2018’s figure, which was boosted by the World Cup, held in Russia last summer.
Lottery leads the way
Lottery revenue still leads the way in the UK. In the six month period, duty raised from lottery sales reached £417 million, making up just under a third of the total. HMRC also noted that the lottery generated £91 million in September 2019, the second highest figure ever recorded for the lottery.
The 0.5% increase in overall gambling related revenue will be good news for the UK government. It had initially delayed the FOBT stake cut last year, for fear of a drop in tax revenue. But after a backlash from across the political spectrum, the FOBT cut was reintroduced. At the same time, there was an increase in the RGD, in order to offset the loss of tax revenue.