William Hill and GVC Will Get £350 Million In FOBT Taxes Back

William Hill and GVC Will Get £350 Million In FOBT Taxes Back

British bookmakers William Hill and GVC Holdings won a legal case related to FOBT taxes recently. The two companies will now get back £350 Million.

Big win for the companies

The two gambling companies claim that they are owed £350 Million from the HMRC (Her Majesty’s Revenue and Customs). They have now won a legal battle related to taxes paid for fixed-odds betting terminals (FOBT) revenues. William Hill can now get £125 million to £150 Million in rebates.

William Hill and GVC Will Get £350 Million In FOBT Taxes Back

In April, the upper tax tribunal rules that the two gambling companies were overcharged for the value-added tax (VAT) for eight years. William Hill released a statement saying that the HMRC will not appeal further. The company added,

“As a result of this announcement, we will now engage with HMRC to agree the support for, quantum and timing of the refund.”

GVC Holdings, on the other hand, can now claim a rebate of £200 million. The company owns popular gambling brands like Coral and Ladbrokes.

What led to the 8-year overcharging?

Gambling companies Rank and Betfred brought a case against the HMRC for overcharging related to VAT payments made between 2005 and 2013. Judge Thomas Scott and Justice Mann ruled that the HMRC should not have charged the companies VAT on the revenues of FOBTs. They ruled that FOBTs are similar to roulette wheels because of which they cannot be subjected to sales tax. With the April ruling, more gambling companies operating FOBTs may also claim a VAT refund from the authorities.

Getting rebates from the authorities would come at an opportune time for gambling operators. Their revenues have dried up because of the coronavirus pandemic. Online sportsbooks have also suffered because of the cancellation of sporting events. Most gambling companies have already issued profit warnings to investors and are looking for cuts jobs as well as dividends.

The situation seems to have improved in the money of May as the Bundesliga German soccer league is getting back into action. The English Premier League teams have also started practicing again.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.