A tribunal victory for Rank Group and Betfred against HM Revenue & Customs (HMRC) has raised the possibility of British bookies getting refunds from the tax man.

VAT on Fixed Odds Betting Terminals

In a rare piece of good news for Britain’s embattled bookies, an Upper Tribunal led by Justice Anthony Mann and Judge Thomas Scott, has ruled in favour of the betting firms in their long running dispute with HMRC over the classification of VAT charges on Fixed Odds Betting Terminals (FOBTs).

The saga revolves around different interpretations of VAT exemptions relating to FOBTS. Basically, Rank Group and Betfred had argued that VAT charges on FOBTs were subject to tax exemptions in line with other casino games, because HMRC had not updated legislation or made any distinction in the supply of games specifically through FBOTs.  In fact, the bookies pointed out that HMRC did not update legislation to include FOBTs until as late as January 2013.

Rank Group challenged tax paid on the machines between 2002 and 2005, while Betfred’s case covered 2005 to 2013. The latest ruling is the third defeat on the issue for HMRC, which had lost two previous battles against the bookies.

In an official statement, Betfred said:

“This is a historical tax case where the Upper Tribunal has agreed with the original court decision in July 2018 that licensed betting offices were wrongly charged VAT on Fixed Odds Betting Terminals between 2005 and 2013 before the introduction of machine games duty.

“We will not be making any further comment as HMRC is still able to seek permission to have an appeal on the matter heard by the Court of Appeal.”

Rank now needs HMRC support

Staying with Rank Group, is has emerged the company has now furloughed almost 90% of its UK-based staff in response to the COVID-19 lockdown. The nearly 7,000 employees should still receive 80% of their salary if the UK governments job retention scheme is rolled out effectively.

Rank Group directors have also volunteered to take a 20% pay cut for the duration of the crisis. The company has estimated that, if its venues remain closed for an extended period, the groups annual underlying operating profit could fall between GBP £48m and £58m.

The company has said it is continuing to work to protect cash and prepare for the safe reopening of its venues, and that it remains optimistic it can “withstand an extended period of economic turmoil” with support from HM Treasury and HMRC.

AYO.NEWS says:

Though the latest ruling is the third defeat for HMRC, we very much doubt this will be the last of it. With tax revenues likely to plummet due to the unprecedented COVID-19 driven economic shutdown, no tax agency will be wanting to give money back.

However, for the bookies, times are equally as tough, and they will be keen to claw back any earnings they can. And, three victories will surely encourage other operators to pile in with similar claims.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

UK-based online bank Revolut has suspended all payments to and from UK gambling sites.

The fintech company says it has suspended all UK gambling payments through its popular app, in response to the UK Gambling Commission’s (UKGC) ban on credit card wagering.

In a statement, Revolut said:

“This applies to all non-remote general betting, pool betting and betting intermediary licences, and all remote licences. While many people gamble responsibly using a credit card, the aim of these new regulations is to help protect those most at risk from gambling money they do not have.”

As we previously reported, the long-awaited credit card wagering ban came into force earlier this week, on Tuesday 14 April 2020.

AYO.NEWS says:

Though UK operators and gamblers had largely come to terms with the idea of a credit card gambling ban, few probably expected popular services like Revolut to suspend gambling transactions.

Though, strictly speaking, the UKGC ban is for “credit card gambling through e-wallets”, it seems Revolut has deemed it either impractical or too risky to try and separate payment sources.

It all adds up to Nanny State UK letting the minority ruin things for the majority yet again.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

Portugal is set to introduce online gambling restrictions for the duration of the COVID-19 (coronavirus) crisis.

A bill demanding action to limit online gambling during the crisis, introduced by members of the environmentalist Partido das Pessoas, dos Animais e da Natureza (PAN), has been passed by the Portuguese parliament.

Though the bill doesn’t detail specific restrictions, it demands “partial or total limitations on access to online gambling platforms.” It also referenced neighbouring Spain, which has restricted audiovisual gambling communications to between 1am and 5am for the duration of the lockdown.

The authors of the bill claim that online gaming revenue has increased 18% year-on-year in Portugal since the country entered a state of emergency on 18 March.

The bill came into effect on 9 April, giving the Portuguese government five working days to introduce the regulations – which means they should be in effect from next Monday. The regulations will stay in effect until the state of emergency in the country is lifted.

The bill was supported by the governing Socialist Party, the Left Bloc, Unitary Democratic Coalition, the Libertal Initiative and Libre parties. It was, however, opposed by the main opposition party, the Social Democrats, along with the CDS People’s Party and Chego.

AYO.NEWS says:

As we have said before, the longer the COVID-19 crisis drags on, the more likely we are to see draconian online gambling restrictions and bans. In addition to Portugal and Spain, we’ve also seen weekly wagering limits introduced in Belgium, while Swedish operators have been warned of “extraordinary measures” unless they reduce online gambling activity, and regulators in the UK and Malta have urged operators to maintain the highest standards of social responsibility to avoid further measures.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

According to the European Gaming and Betting Association (EGBA), the COVID-19 (coronavirus) lockdowns will lead to less, not more, online gambling.

Citing Belgian government statistics, which show a 38% drop in traffic to licensed gambling sites, the EGBA claims the widely cited spoke in lockdown player activity is “unfounded.”

In a blog post EGBA Secretary General, Maarten Haijer, asserted that because almost half of European online gambling is sports betting, the worldwide suspension of traditional sports is seeing bookies web traffic and revenue tumble.

Haijer also took a swipe at the draconian advertising restrictions being introduced in several European countries, saying:

“This is contrary to what many predicted and disproves the concerns about dramatic increases in online gambling, which have underpinned the recent introduction of severe advertising restrictions in some European countries.”

He did, however, acknowledge the importance of safer gambling policies and procedures during the crisis, saying that online gambling companies should make sure responsible gambling tools are readily available to customers.

AYO.NEWS says:

Haijer’s comments are clearly an attempt to dissuade regulators from introducing more restrictions on the online gambling industry during the crisis, though he is somewhat missing the key point. That being that the crisis is affecting the online gambling industry very unevenly.

Clearly, those operators very reliant on traditional sports betting are being most severely affected, while those more focused on online casino are seeing traffic and business hold up relatively well. Meanwhile, specialist esports betting operators are actually doing record business.

However, it isn’t quite that simple. As we’ve seen in Nektan’s case – those businesses that are reliant on financing or heavily indebted, even if their accounts were getting healthier, have suddenly seen access to financing disappear as the unprecedented global economic crash takes hold. For the same reason, some esports organisations are now struggling, despite a massive increase in interest in esports.  

As we’ve said before, everything will depend on the duration of the crisis. Up until this point, most in the business have expected everything, including traditional sports, to “go back to normal” by summer. However, it is now becoming clear that, even if some lockdowns are partially eased in certain locations, global mass travel and sporting events will likely be affected for a long time, as social distancing measures and many restrictions could remain in place for years.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

Malta-based online casino Videoslots has introduced mandatory loss limits for all UK-based players, to help protect them during the COVID-19 crisis.

Before UK players can place their first bets, they will be required to set a loss limit. After the limit has been set, changing it will take seven days and communication with Videoslots’ responsible gambling team.

Explaining the move Videoslots CEO, Alexander Stevendahl, said:

“Playing on Videoslots.com should be a safe and enjoyable form of entertainment and that’s why we’ve made loss limits mandatory. Prompted by the pandemic while understanding it’s the right thing to do as the industry moves forward, this addition is another way to further protect our players, especially during these tough times. We expect other operators to follow suit.”

The move by Videoslots comes just days after the UK Gambling Commission implemented its long-planned credit card wagering ban, and follows a stern warning to UK-licensed operators from the Commission’s chair, Neil McArthur, about maintaining the highest standards of social responsibility during the crisis.

AYO.NEWS says:

With pressure mounting on operators gambling operators across Europe and beyond to reign in the significant surge in online gambling the COVID-19 lockdowns have sparked, its no surprise to see one of the more conscientious casinos take pre-emptive action like this. The question is, will other operators follow, and will it be enough to head-off any further regulatory action?

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

NASCAR driver Kyle Larson has been suspended indefinitely by Chip Ganassi Racing (CGR) for using a racial slur during an iRacing event.

Though the race wasn’t part of the hugely successful eNASCAR Pro Invitational Series, the race on Sunday night was streamed on the sanctioning body’s digital channels.

In a statement, CGR said it was “extremely disappointed” with Larson’s “offensive and unacceptable” comments, and had immediately suspended the driver without pay.

Meanwhile, NASCAR itself suspended Larson indefinitely, and will be requiring him to attend sensitivity training. In a statement, the organisation said:

“NASCAR has made diversity and inclusion a priority and will not tolerate the type of language used by Kyle Larson during Sunday’s iRacing event. Our Member Conduct Guidelines are clear in this regard, and we will enforce these guidelines to maintain an inclusive environment for our entire industry and fan base.”

One of NASCAR’s most promising young drivers, in real-life Larson drives the No. 42 Chevy sponsored by McDonalds’, Credit One Bank, and Advent Health.

AYO.NEWS says:

Its good to see both CGR and NASCAR crack down hard on racism in its esports events. With sim racing now reaching vast new audiences due to the COVID-19 (coronavirus) lockdown, its important to make the sport as accessible and inclusive as possible, and show there’s no place for racism or bigotry.

Staying with sim racing, just last week we reported that Nevada had given the green light for eNASCAR wagers.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.