UK Treasury: PoC tax will apply to sports bonusing

The UK Treasury is to inform sportsbook operators that the imminent point of consumption tax will be applied to free bets and bonuses, eGaming Review understands.

Chancellor George Osborne is expected to confirm the 15% levy will be applied to all sports betting gross gaming revenue when he announces his spring Budget on 19 March.

With other verticals such as bingo and casino permitted to offer customer inducements on a tax deductible basis, sports betting will be alone in having a levy applied to free bets when the point of consumption tax comes into effect in December.

It is also understood that in calling for the treatment of sports betting to be aligned with other verticals, operators have been warned this could lead to a scenario in which the tax is widened to include all verticals.

However, talks between the two sides continue with operators attempting to score other tax concessions with tax deductible affiliate, marketing and compliance costs also thought to be under negotiation.

A spokesperson for the Treasury refused to comment on the story however said the issue will be addressed in the Budget.

The news comes after the Gambling Commission published the new application forms which any British-facing operator or supplier will have to complete in order to gain a new remote licence.

The application forms have also been issued with additional guidance which includes more detail on the UK regulator’s plans to award ‘continuation licences’ so businesses can operate without disruption during the application process.