UK Casino Tax Bands Change for 2022

Regulated land-based casinos in the UK will need to adhere to tax changes from the beginning of April 2022. 

HM Revenue and Customs (HMRC) accepted a change to current policies, which will see more bands increased to keep in line with inflation. 

What will land-based UK casinos pay? 

Casinos in the country will need to pay taxes based on which one of the five tax categories they fall into. 

For the first £2,548,500 of gross gaming yield (GGY), casinos will pay a 15% tax rate. This figure then increases to 20% for the next £1.757 million. 

The next 3.077 million after that will be taxed at 30%, and the following £6,494,500 thereafter will come at a 40% rate. 

Anything above the amounts mentioned will be taxed at a flat rate of 50%. 

Why are tax bands changing for UK casinos? 

The UK has 50 regulated land-based casinos spread throughout the country. 

The tax band revision forms part of the 2021/2022 Finance Bill, which is coming into effect soon. 

Since 1997, casinos have had to pay between 15% and 50% on earnings ranging from £2.5 million to £13.8 million. However, times have changed since then — and the inflation rate for the Great British Pound has averaged at 2.64% in that time. 

In the proposal, the following was said: 

“The measure will ensure that the gaming duty accounted for by the casino operators is maintained at real levels.

 “If the bandings were not increased in line with inflation, then over time, more GGY would be subject to higher rates.” 

UK land-based casino revenue 

Brick-and-mortar casinos are an important cornerstone of the British economy, and they provide jobs in addition to millions in tax revenue. 

In recent years, the rise of online gambling has resulted in fewer people visiting such venues. However, they’re still largely profitable. 

Throughout much of 2020 and the beginning of 2021, land-based casinos in the UK suffered from several closures due to the COVID-19 pandemic. For the 2020-2021 tax year, overall casino tax revenue – including online and offline venues – fell by 6%. 

However, you can see the impact even worse when looking at land-based venues. Brick-and-mortar casino tax revenue dropped by 62%, while their online counterparts actually saw a 25% rise. 

Bouncing back from the pandemic 

Due to the impact of COVID-19 on land-based casinos, businesses face a long recovery. To help on the road back, Betting and Gaming Council (BGC) Chief Executive Michael Dugher called on the chancellor to announce a “budget for jobs”. 

Prior to yesterday’s budget announcement, Dugher said: 

“Our members are ready, willing and able to assist in the post-pandemic economic recovery. They already support tens of thousands of jobs across the UK, helping to generate billions of pounds in revenue for the Treasury, and with ambitious plans for further expansion in the years to come.”

He continued: “I therefore hope that the Chancellor delivers a Budget for jobs which will help to repair the damage done by Covid, sustain the economic recovery and – with the full support of the regulated betting and gaming industry – help Britain to build back better.”