|The National Audit Office has produced a report, warning that UK Customs & Excise needs to do more to address remote gambling operations, which it identifies as a ‘risk to revenue’. The NAO states that, while the introduction of gross profits tax on betting, introduced in 2001, has done much to convince bookmakers to stay in the UK, it was shortsighted in its 'underestimation of the popularity of new betting products with low profit margins'.|
The NAO said that, while more people are betting than ever before, duty revenue is down to 1.2 pct in 2003-04 from 6.7 pct in 1999-00.
'The gambling industry's use of electronic technology to develop new forms of gambling poses new risks to revenue,' the NAO said. ”Betting exchanges, interactive TV gambling, mobile phone gambling, spread betting and internet gaming have all emerged in recent years. Customs will require more IT expertise to carry out compliance work on these activities.'