Remote gambling operators in the United Kingdom will be subject to a 21 per cent duty on online gaming of chance from next year.
The widely anticipated increase in Remote Gaming Duty was confirmed Monday by chancellor Philip Hammond in his budget address.
Remote Gaming Duty will rise from the current rate of 15 per cent of gross gambling yield to 21 per cent in October 2019.
The chancellor explained that the duty increase will fund the loss of revenue from fixed odds betting terminals (FOBTs), as the maximum stake per spin on the machines is cut to £2 from October 2019.
The government said that the intention to raise the rate of Remote Gaming Duty from 1 October 2019 is being announced at Budget 2018 to give remote gaming operators sufficient advance notice of the increase.
The increase is expected to deliver £130m to the Exchequer in 2019/20, rising to £290m in 2023/24.
London-listed GVC Holdings plc. (LSE:GVC) saw its shares close up 6.53 per cent on the news at 922.00 pence per share. Shares in William Hill plc. (LSE:WMH) closed up 3.02 per cent at 205.00 pence per share, while Paddy Power Betfair plc. (LSE:PPB) closed up 2.76 per cent at 6,710.00 pence per share.