Her Majesty’s Revenue and Customs confirmed not very positive financial news for the UK’s gambling industry.
According to the department responsible for tax collection, it didn’t expect such a low level of revenue generated by the market in 2020-2021.
Lockdowns are the major reason
The HMRC representatives say that lockdowns caused by the COVID-19 pandemic and the shutdown of land-based gambling venues have become the main reason for the financial situation in the market. They provided data stating that during the period of March 2020-April 2021, the department had got only £2.83 billion. This sum is by £182 million (six percent) less in comparison to 2019-2020’s figures.
HM Revenue & Customs also highlighted that the pandemic’s effect on the betting industry, the postponement or even cancellation of sports competitions, in particular, hadn’t hindered betting duties from growing by two percent (£604 million). The increase in online gambling duties didn’t become a surprise as many players switched to remote gaming during the lockdown. It led to a 25% rise in tax revenue (£885 million). The lottery has brought the biggest amount of taxes to the HMRC – £980 million, but it is only a one-percent increase in comparison to the previous year.
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