Section 127A — Finance Act 2014: General betting duty charge on remote bets

General betting duty charge on remote bets 127A 1 General betting duty is charged on a remote bet made with a bookmaker.

2 It is charged at the rate of 25% of the bookmaker’s profits on remote bets for an accounting period.

3 The bookmaker’s profits on remote bets for an accounting period are the aggregate of—

a the amount of the bookmaker’s ordinary profits for the period in respect of remote bets (calculated in accordance with section 131),

and b the amount of the bookmaker’s retained winnings profits for the period in respect of remote bets (calculated in accordance with section 132).

4 Where the calculation for an accounting period under subsection (3) produces a negative amount—

a the bookmaker’s profits on remote bets for the accounting period are treated as nil, and b the amount produced by the calculation may be carried forward in reduction of the bookmaker’s profits on remote bets for one or more later accounting periods.

5 A bet is a remote bet for the purposes of this Part if—

a it is made using remote communication, b it is not an on-course bet, a spread bet or made by way of pool betting, c it is not made using a self-service betting terminal, and d condition B or C in section 126 is met in relation to it.

6 The reference here to “remote communication” is to communication using—

a the internet, b telephone, c television, d radio, or e any other kind of electronic or other technology for facilitating communication.

7 A bet is to be treated as not being a remote bet for the purposes of this Part if it is made wholly in relation to horse racing taking place in the United Kingdom.

8 In this section, “ self-service betting terminal ” means a machine which—

a is designed or adapted for use to bet on future real events, b is not a gaming machine (within the meaning of section 235 of the Gambling Act 2005),

and c is located on premises in respect of which there is a betting premises licence (within the meaning of section 150(1)(e) of the Gambling Act 2005) or a bookmaking office licence (within the meaning of Article 2(2) of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 ( S.I. 1985/1204 )).

9 The Treasury may by regulations amend subsection (6).