The UK’s gambling machine owners and operators could be set for a significant tax refund following a decision by HM Revenue & Customs (HMRC) to forgo an appeal relating to a court case the tax authority lost earlier in June.
The case in question was won by Rank Group who successfully argued that it was unfairly charged value added tax (VAT) on some of its slots and gambling machine activity. The group operates bingo clubs and casinos throughout the UK including the Mecca Bingo chain and Grosvenor Casinos.
UK Gambling Machine Operators Set for Major Tax Refund as HMRC Rejects Opportunity to Appeal VAT Case UK Gambling Machine Operators Set for Major Tax Refund as HMRC Rejects Opportunity to Appeal VAT CaseThis opens the door for gambling machine operators to lodge similar complaints of overcharging which could see the HMRC pay out billions in VAT refunds over the coming years.
The tribunal was one of a series of tribunals initiated by Rank Group since 2008 but is certainly the most significant in terms of how it will affect the industry as a whole. The case also follows a similar ruling made in favour of Betfred in 2018. The company had alleged that it was overcharged VAT on its fixed odds terminals. The court’s decision was appealed by the HMRC with the decision upheld last year.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.