UK Government Postpones RTP Reduction for Now, But It’s Only a Matter of Time
Despite recent speculation, the reduction of Return to Player (RTP) rates for UK players has been postponed—for now. However, given the direction things are heading, it seems like only a matter of time before they lower RTP and hike taxes on the gambling industry.
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Over the weekend, rumors surfaced about a potential £3bn tax raid on the gambling sector, causing a stir in the industry. Stock prices took a hit, and industry leaders like Betting and Gaming Council CEO Grainne Hurst and Flutter Entertainment CEO Peter Jackson voiced their concerns, arguing that further tax increases would hurt the sector.
Lisa Nandy, the Secretary of State for Culture, Media, and Sport, downplayed the rumors during a session in the House of Commons, stating, "You can’t believe everything you read in the papers." While this might sound reassuring, Nandy emphasized that the government is trying to strike a balance between protecting problem gamblers and supporting the industry.
Though tax hikes and RTP reductions aren't happening yet, it’s hard not to see this as a warning. With the government looking to raise funds and the pressure to regulate gambling mounting, the industry might face higher taxes and reduced player payouts sooner rather than later.
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If they’re not raising taxes and reducing RTP now, it’s only because they’re waiting for the right moment to do it.
Nandy says 'you can’t believe everything in the papers,' but we’ve seen this before—RTP cuts are coming for sure!
This just feels like a delay tactic. We all know they're going to raise taxes and reduce RTP sooner or later.
So, no changes today, but give it a few months and UK players will be facing worse RTP rates. Watch this space.
Of course they’ll strike a 'balance'—a balance between taking more money from players and increasing taxes on operators!