Gambling Duty Act 2012 to come into operation on 1 January 2014

The Treasury advises that the necessary orders and regulations required to bring the Gambling Duty Act 2012 into operation are to be put before the November sitting of Tynwald.  Subject to the approval of Tynwald, it is the intention of the Treasury that the Act should come into operation on 1 January 2014.

The Act, which received Royal Assent in October 2012, replaces the former general betting duty, pool betting duty and online gambling duty with a single duty of excise called “gambling duty”.  The Act repeals and replaces various provisions contained in the Pool Betting (Isle of Man) Act 1961, Betting Act 1970 and the Online Gambling Regulation Act 2001 which are concerned with the relevant duties.

The Act does not deal with machine games duty, lottery duty on National Lottery games, or land-based casino gaming.

The rates and bases of liability for operators of the new gambling duty under the new Act will remain the same as currently apply for the duties being replaced.  However, the new provisions are designed to be more flexible, and so better able to deal with technical or other developments.  In this way, the Act is designed to create a consolidated and robust legislative framework underpinning what has become an important business sector in the Island, whilst allowing for future development of an innovative and fast-moving area.

Previously a business had different law and procedures to follow in accounting for duty, and governing its dealings with Customs and Excise, depending on whether the business was a local bookmaker, pools promoter or online gambling operator, with different forms, public notices etc.  From January 2014 there will be a single structure.

Where existing operators have been granted any permissions or exemptions, these will continue under the new duty regime.  Furthermore, whilst any new operator intending to undertake dutiable operations on or after 1 January 2014 is required to provide the Treasury with 7 days’ prior notice, anyone who was already accounting for the duties being replaced will not be required to give such notification.  Any credits or losses accrued will also be transferrable to the new duty.

A new Public Notice 451 MAN has been prepared and will be available on the Customs and Excise pages of the Isle of Man Government website in due course.  An advance copy of the Notice is attached.

For more information, or if you have any queries regarding the new arrangements, please contact Customs and Excise.