Tax Increase Expected For Online Betting

Gordon Brown is to clamp down on internet betting exchanges and will demand that they pay more duty to Customs and Excise.

The Treasury will make its move after a National Audit report has revealed that out of £2.67 billion wagered on exchanges, a paltry £7.3 million was paid to Customs and Excise last year. This compares with £376m paid by bookmakers on bets worth close to £30bn.

Online exchanges allow punters to be the bookmaker and set odds on any event. They take commission on whoever wins each bet. But bookies have been up in arms because those who offer bets on exchanges give far more generous odds because of not paying any duty.

A Whitehall insider said the Treasury will move within months to close the loophole. A well-placed industry source added ‘The duty and the commission that exchanges make just doesn’t add up. It’s all pointing to the Treasury acting to stop this.’