HM Customs and Excise CE 12
17 March 1998
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GAMING DUTY - INCREASE FOR LARGER CASINOS
The Chancellor has announced that the top rate of gaming duty
has been increased to 40 per cent and the gross gaming yield
(ggy) thresholds for each duty band have been revised. The
changes are effective for accounting periods beginning on or
after 1 April 1998.
DETAILS
1. The changes will yield 25 million pounds in a full year.
The new rates and reduced ggy thresholds for each band are
shown in the table below alongside the current rates.
New rates
The first 400,000 pounds of ggy 2.5 per cent
The next 1,000,000 pounds of ggy 12.5 per cent
The next 1,500,000 pounds of ggy 25 per cent
The remainder 40 per cent
Current rates
The first 450,000 pounds of ggy 2.5 per cent
The next 2,250,000 pounds of ggy 12.5 per cent
The next 2,700,000 pounds of ggy 25 per cent
The remainder 33 1/3 per cent
NOTES FOR EDITORS
1. There are 116 casinos in the UK, with 21 in London.
Approximately 2.3 billion pounds was staked in casinos in
1996/97. Of this 81 per cent was returned as winnings,
leaving a ggy of 450 million pounds. Over 80 per cent of the
gaming duty was paid by the 21 London casinos.
2. Gaming duty is payable by casinos on their gross gaming
yield (ggy) which is largely their gross profit from gaming.
3. The current rates have been in force since 1 October 1991
firstly as gaming licence duty and from 1 October 1997 as
gaming duty. The changes made on 1 October 1997 removed the
need for a revenue gaming licence, introduced flexible
accounting periods and made provision for group registrations
.
4. Receipts of gaming (licence) duty have been as follows:
1994/1995 72 million pounds
1995/1996 84 million pounds
1996/1997 79 million pounds
1997/1998 (to January) 79 million pounds
5. The duty is calculated on the ggy for a period of six
months, which allows for seasonal variations and any
exceptional wins and losses to be evened out. Casinos make an
interim payment based on the ggy for the first three months of
the six month period and then deduct this payment from the
duty due on the ggy for the full six months.
6. The revenue effect of this measure will be to yield an
additional 20 million pounds in the years 1998/99 and 25
million pounds in 1999/2000 and 2000/01 on an indexed basis,
and 20 million pounds in 1998/99 on a non-indexed basis. The
effect on RPI will be negligible.
7. Details for traders are available in Budget Notice BN 79
/98, which is available from Customs and Excise Business
Advice Centres and from the Customs and Excise Internet site.
Press enquiries only to HM Customs and Excise, Public
Relations Office, New King's Beam House, 22 Upper Ground,
London, SE1 9PJ.
Telephone: 0171 865 5468/5471
Others should contact their local Excise and Inland Customs
Business Advice Centre, listed under Customs and Excise in
the telephone book.
Customs and Excise Internet address:
http://www.open.gov.uk/customs/c&ehome.htm
This news release can also be found at:
http://www.hm-treasury.gov.uk. Other Treasury material can
also be found at this address.