Budget 2018: UK's Hammond plans to raise offshore gambling tax - report

(Sharecast News) - UK finance minister Philip Hammond is set to increase tax paid by offshore gambling companies in his Budget later this month, the Financial Times reported citing government aides.Hammond reportedly wants to ramp up the remote gaming duty paid by overseas operators who offer online casino-type games such as blackjack.The move would raise around £1bn over five years, the report stated, making up for lost revenue after the government's crackdown on fixed-odds betting terminals (FOBT).Earlier this year the maximum FOBT stake was slashed to £2 from £100 to £2 to tackle problem gambling.Hammond is expected to announce a range of revenue-raising measures in the October 29 Budget, as he faces growing pressure to ease austerity measures that have squeezed stagnating household incomes.The Financial Times report stated that the gaming industry was expecting to lift the remote gaming duty to 20%-25% from 15%. The tax was originally brought in to level the fiscal playing field between UK-based gambling groups and offshore competitors.Large operators such as Ladbrokes and William Hill have set up online operations based in Gibraltar."This means it's a double whammy for UK operators because they'll be hurt by the FOBT move and now this as well," the newspaper cited one unnamed industry executive as saying.