|UK Chancellor Gordon Brown announced his budget today, March 17th 2004. There has been no change in taxation for bookmakers this year. Gordon Brown did mention in his speech however that betting exchanges were to be reviewed.|
Brown changed gambling taxation in 2001 - shifting tax on profits from the punter to the bookmaker – in an attempt to stop business shifting to offshore companies. This measure has been widely seen as successful but has now raised questions over betting exchanges.
Betting exchanges effectively act as a host for wagers to be placed upon. It has been argued that this turns many of the users of betting exchanges into bookmakers and that in turn they should be subject to taxation.
There has been no mention of a timescale in terms of the review.