British online gaming firm issued a statement they are “on course to meet expectations”, after a dip in share prices.
Although they have now announced the positive news, the sudden fall in share prices nevertheless worried the Gibraltar based mobile casino.
One of the primary reasons for the share price decrease can be linked to the recent raise in tax duty for Fixed Odds Betting Terminals. The Chancellor of the Exchequer ordered the British bookmakers to pay a new 25% tax rate, which is 5% more than it used to be.
The new tax comes in the wake of the finalization of UK Gambling (Advertising and Licensing) Bill 2013-2014.
As soon as the bill is officially passed, mobile betting companies like 32Red will have to pay a substantial point of consumption tax, which stands at 15%.
New tax does not affect 32Red’s finances
32Red issued a statement regarding the new taxes, in which they conveyed their assurance the tax duties do not strictly concern the online gaming company.
“New announcements in the Budget regarding increased Fixed Odds Betting Terminal duties and levy collection do not impact the Company.”
The betting firm additionally commented on the British POC tax, “the company continues to work with the Gibraltar Betting and Gaming Association to ensure that the industry concerns are voiced and understood by the UK Government and other stakeholders.”