UK gambling tax revenues up by 11% in 2022
The UK has long been known as a global gambling hub and one of the top destinations around for casino gaming. This position has been confirmed by recent government figures on UK gambling tax revenues in 2022. In the period from April 2022 to September 2022 for example, gambling tax revenue in the UK shot up by 11% to £1.62bn. This is £164m higher than the same period in the last financial year to date in 2021, which came in at £1.45bn, and accounts for the 11% increase in tax revenue collected from gambling in the UK.
But just where is most of the tax revenue collected from in UK gambling and what does it tell us about the industry in general?
Which niche does the UK collect most of its gambling tax revenue from?
The latest HMRC data for tax revenues and UK gambling in 2022 shows two distinct niches account for most of the money collected. Duty on lottery gaming is one and makes up around 30% of the total amount generated at £490m. Remote Gaming Duty, which is tax collected from online casino platforms, is the other major player and brought £461m into HMRC coffers, which is around 28% of the total gambling tax monies collected by the government in 2022 to date.
While this shows how important both niches are to UK gambling in general, it particularly highlights the critical nature of online casino gaming. In response to the tax revenue data around UK remote gaming, Giuseppe Faraone from casino comparison platform casinotopsonline.com noted that: “The figures show not only how vibrant the UK gambling sector is currently but also what a major part remote gaming has to play in this.”
Indeed, HMRC continues to register a year-on-year increase in Remote Gaming Duty, and it stands out as the only tax category which has shown larger tax revenues each quarter to date. The past three years have seen this part of UK gambling grow consecutively, and this points to an area within the country’s gambling scene which is doing very well.
Where else does the UK collect tax money from in the gambling sector?
Although the above are two major niches within UK gambling for tax revenue, other areas were also prominent in the recently released data from HMRC. General Gaming Duty, Bingo Duty and Machine Gaming Duty all played their part in the 11% increase seen in the year to date for gambling tax revenues.
Machine Gaming Duty for example generated £267m in terms of taxes for the UK government, while General Gaming Duty, which is tax levied on land-based casinos, brought in £76m. The interesting thing to note about figures like these is what it says about the gambling industry around Great Britain currently.
Everyone knows that the last few years were tough for many parts of the sector, excluding online casinos sites, but we have now seen the return of land-based gaming in the UK. There is no doubt that this has contributed to the 11% increase in tax monies in 2022 and helped bring the industry back to where it was pre-pandemic. When you consider that the tax revenue for Machine Gaming Duty in 2021 was just £106m, it is clear to see the upward movement 2022 has seen to date in even this one area.
Tax revenue data for 2022 shows UK gambling sector thriving
The major takeaway from these recent figures from HMRC is a UK gambling sector which is thriving. It seems to have really bounced back from a tough couple of years and is looking to be on the rise once more. Although the online casino niche within gambling had remained buoyant in general previously, the increase in Machine Gaming Duty clearly points to other parts of the industry being in a healthy state.
The many different aspects of the UK gambling scene which have contributed to the £1.62bn in tax revenue generated in 2022 also shows how diverse it now is. From traditional land-based gaming to online casino play and national lottery tickets, it really is a sector which has plenty of choice. This choice has enabled the industry to ride out any tough times and find new ways to engage with gamblers. As the technology within the overall gambling sector continues to develop at a staggering pace, expect to see even more diversity soon in terms of how UK citizens can gamble.
Gideon Wood - info@responsibleentertainment.com
Responsible Entertainment Limited is a news-and-marketing based company dedicated to divulging key industry information related to the iGaming and sports betting sectors.
Tags: