Will UK tax changes impact on Irish online casino operators

Whilst not directly related to casinos in Ireland, fears that the higher tax on fruit machines and other slots which is due to be introduced in the UK in February would impact on the performance of all the gaming companies, including the Irish online casino operator Paddy Power, appear to have receded. Brokers are now forecasting that the change which replaces the Amusement Machine Licence Duty and VAT which currently totals 17%, with a 20% Machine Games Duty, will not impact unduly on the industry. Recent financial results from the Irish casino operator Paddy Power in particular, demonstrated the importance of the slots they have installed in their high street shops, and although the new duty will not affect their betting shops in Ireland, it was thought that the tax hike would severely hit their shops in the UK. The main reason for the optimism now being shown by the brokers appears to be the cut in Corporation Tax announced in the budget, which of course will go some way towards negating the higher Duty. William Hill and Ladbrokes shares both gained last week as a result of the brokers’ opinions. The importance of casino games such as the slots are clear to everyone in the online casino business, but for those online casino operators who also own betting shops, a higher tax take could have had a serious impact on the overall group performance and they will no doubt be relieved. Another snippet of casino news being reported this week is the possible appointment of Brian Mattingley as Chief Executive of 888 Holdings on a permanent basis, following his caretaker appointment last year. The online casino operator 888 Holdings are expected to report good results this week and such a move is likely to be welcomed by the shareholders.