UK sportsbooks have won a big case against HM Revenue & Customs, as Betfred won a ruling that could see books raking in a £1 billion tax rebate.
Officials overseeing the case ruled in favor of Betfred, noting that VAT collected on fixed odds betting terminals from 2005 to 2013 breached net neutrality rules. This was because online casino games were exempt from the tax. The tribunal calculated the £1 billion rebate as an estimation of VAT paid by books over the eight-year period.
It's believed that Betfred will be claiming about £100 million of the rebate.
Upfront, the ruling is a win for bookmakers that offer fixed odds betting terminals (FOBTs), which have recently faced clampdowns on the max-bet amounts. Players will now be restricted to £2 per bet, down from the £100 now available. This change is being delayed a bit as parliament needs to augment statutes to make the changes legal.
No comment from any party involved in the VAT case was available as of press time.