HM Revenue and Customs (HMRC) reported that gambling revenue for fiscal year 2020/2021 was lower than expected, largely due to the economic impact of national lockdowns.
Total tax revenue recorded from April 2020 to March 2021 totaled £ 2.83bn – a drop of £ 182m or 6% from 2019/2020 tax rights – attributed to imposing COVID-19 lockdowns the closure of retail betting and gaming sites from March 2020.
The HMRC also noted that the performance of the betting industry had been affected by “ the cancellation of several sporting events due to the coronavirus pandemic ”.
Detailing ‘provisional’ national gambling statistics in the UK, the HMRC pointed out that betting rights represented total revenue of £ 604million, up 2% from 2019/2020 results from £ 591million – 98.4% being allocated by general betting rights covering remote and retail services. Paris.
However, the shift from retail to online betting and gaming led HMRC to record a 25% increase in tax revenue from Remote gaming functions (RGD), an increase from £ 179million to £ 885million.
RGD accounted for 31% of total industry revenues, with an increase in tax duties against a decrease of 44% Machine game tasks (MGD) to £ 282million as well as an even larger drop in Game functions (GD) by 62% to £ 79million.
“The increases in RGD from previous years are potentially due to players using locked-out online services more than they would if betting shops, bingo halls and other gaming facilities were open as usual, “HMRC detailed in a statement.
Among the various sectors of the UK betting and gaming industry, Lottery duty (LD) turned out to be the highest revenue generator for HMRC, recording provisional revenue of £ 980million, up £ 12million from 2019/2020 results, an increase of 1 %.
Lottery fees were noted to have remained stable from previous years despite economic headwinds from the coronavirus pandemic, recording revenue of £ 101million for February 2021 alone.
Despite the decline in total UK gambling revenue for HMRC, some betting operators have reported strong starts through 2021, with companies such as 888 highlighting the successes in the first quarter trading reports.