Betinternet Wants Manx Government To Raise Betting Tax To 15%

by Jason Gorringe, Tax-News.com, London

01 April 2003

Betinternet.com, the Isle of Man based online gambling firm, has asked the Manx government to raise betting duty from 10% to 15%.

The rather bizarre request does have a certain amount of logic to it however, as current rules prevent the company from advertising in the UK which has a levy of 15%.

Paul Doona, managing director of betinternet.com, explained that under UK legislation, the Isle of Man was only treated as part of the common purse when the rates of duty levied in the UK and the Isle of Man were equal. Because the island's rate has been reduced to 10%, rules stipulate that the gaming firm is unable to advertise in the UK as it enjoys a competitive advantage.

Doona told the Isle of Man Online news service of a meeting with the Mirror Group which publishes The Racing Post, a prime spot for advertising in the betting industry. A representative of the Group explained that it was "purely a matter of differential duty" which prevents them advertising in the publication.

Of the island's decision to reduce the betting profits levy, Paul Doona explained: "What appeared to be something that would give us a competitive advantage is actually working against us because we cannot advertise in the UK due to our duty being less than the UK".

The betting firm is currently in talks with the Manx government on the issue.

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