Official Statistics

Quality report: UK Betting and Gaming Statistics

Updated 24 October 2022

1. Contact

• Organisation unit - Knowledge, Analysis and Intelligence (KAI)

• Name - Indirect Tax Receipts Monitoring, Indirect Taxes, Customs & Co-ordination

• Mail address – Three New Bailey, Salford M3 5FS

• Email - revenuemonitoring@hmrc.gov.uk

2. Data description

This publication provides a breakdown of historical receipts and liabilities for all 7 betting and gaming regimes.

The publication includes duty receipts statistics which are up to the latest full month before the statistics release. It also includes statistics relating to liabilities which are one month behind that of duty receipts.

Liability statistics relate to when traders accrue tax liabilities through the provision of a service.

This publication only includes figures for previous years. Forecasts of future betting and gaming receipts are produced and published by the Office for Budget Responsibility (OBR), and can be found on their website.

2.1 Classification system

Returns processed through the Enterprise Tax Management Platform (ETMP), detailed in the Source data section, help classify the data within the Betting and Gaming Statistics and provide the main breakdowns into the different tax heads.

A unique taxpayer reference (UTR) number is assigned to each registered UK trader. These UTRs are used during the data aggregation process.

2.2 Tax coverage

The betting and gaming duties are indirect taxes charged following the provision of betting and gaming services in the UK.

This analysis focuses on UK registered betting and gaming providers.

2.3 Variable definitions

General Betting Duty

General Betting Duty (GBD) is a duty charged on bets made with a UK-based bookmaker, other than on-course betting. These bets are ‘fixed odds’ bets, which means that when a bet is placed, the punter knows how much they will win if successful. General Betting Duty has been charged on money received for bets, less money paid out for winnings (‘gross profits’) since the regime was reformed in April 2002.

Go to ‘Excise Notice 451a’ for additional regime information.

Pool Betting Duty

Pool Betting Duty (PBD) is where the winners have a share in the pool of stake money placed on a particular event. They do not know the amount of their winnings until after the event when the size of the pool is known. Like GBD, PBD is charged on money received for bets, less money paid out for winnings (‘gross profits’).

Go to ‘Excise Notice 147a’ for additional regime information.

Gaming Duty

Gaming Duty is charged on any premises where ‘dutiable gaming’ takes place (casinos). Dutiable gaming applies to certain games such as: Baccarat, Blackjack, Poker, Craps, French Roulette, Wheel of Fortune etc. The amount of duty payable is based on the money gambled, minus any winnings paid out (‘gross profits’).

Go to ‘Excise Notice 453’ for additional regime information.

Bingo Duty

Bingo Duty is paid by the promoters of bingo in the UK on the amount of bingo receipts less the amount of winnings paid out (‘gross profits’). Bingo Duty was subject to reform in 2003, when the previous duty was rationalised and brought into line with some of the other gambling duties. All bingo in the UK is liable to pay duty. However, certain varieties are exempt, such as domestic bingo within a private residence, small-scale bingo, not-for-profit bingo and machine bingo.

Go to ‘Excise Notice 457’ for additional regime information.

Remote Gaming Duty

Remote Gaming Duty (RGD) refers to the playing of a game-of-chance for a prize by remote communication, such as the internet, telephone or television. Duty is paid by the provider of the remote service and is calculated on the amount of money receivable, minus any paid-out winnings (‘gross profits’). RGD was introduced in 2007.

For reasons of taxpayer confidentiality, prior to April 2015, the then nominal amount of RGD receipts were included within the Gaming Duty figures. Following Gambling Tax Reform (GTR) introduced by HMRC on the 1 December 2014, RGD receipts have been recorded separately since April 2015.

Go to ‘Excise Notice 455a’ for additional regime information.

Machine Games Duty

Machine Games Duty (MGD) replaced Amusement Machine Licence Duty (AMLD) and VAT charged on the income from gaming machines from the 1 February 2013. MGD is charged on the playing of dutiable machine games where customers pay to play the games in the hope they will win a cash prize that’s more than the cost to play the machine. MGD is not payable on machine games that only offer non-cash prizes or only cash prizes that are less than the cost to play.

Go to ‘Excise Notice 452’ for additional regime information.

Lottery Duty

Lottery Duty was introduced in November 1994, and applies to duty from the National Lottery only. It is a duty on the taking of a chance or ticket in a lottery that is promoted in the UK, unless specifically exempt. However, all lotteries, except the National Lottery, are exempt from the duty. The duty applies to lottery tickets and scratchcards. The duty payable is based on the stake money received from ticket sales.

Go to ‘Excise Notice 458’ for additional regime information.

Betting and gaming duty receipts

The amount of betting and gaming duty paid to HMRC. This is revenue reported in the statistics.

MGD Liabilities

The amount of MGD owed by gaming providers. This is reported in the statistics.

2.4 Statistical unit

The unit in the statistics is businesses and other entities required to pay betting and gaming duties within the UK.

2.5 Time coverage

The statistics cover the time period from financial year 1986 to 1987 until the latest financial year for which a complete set of betting and gaming duty returns are available.

The statistics are aggregated into financial years. A financial year stretches from 1 April until 31 March the following calendar year.

3. Statistical processing

3.1 Source data

The data used to compile the UK Betting and Gaming Statistics release comes from ETMP. Prior to the introduction of ETMP, receipts were sourced from the Customs and Excise Core Accounting System (CECAS), however this system is no longer active for these taxes and only reflects historic data.

3.2 Frequency of data collection

The data for betting and gaming receipts are downloaded every month into databases for analysis and the data for MGD liabilities are downloaded every 6 months for analysis in the Betting and Gaming Statistics.

3.3 Data collection

Data on betting and gaming duty receipts are sourced from ETMP. This data is downloaded every month from the system and collated in internal files. Collection is part of the team’s normal administrative procedures. Data is sense checked and checked against previous months and years for differing trends. Any unexpected trends are thoroughly investigated and explained.

3.4 Data validation

Data validation processes are as follows:

• source data is checked against the previous release within the betting and gaming working file for any revisions every release and any revisions are clearly marked

• statistics are sense checked after compilation to ensure there are no mistakes or unexplained outliers

• data may be compared to external or public sources to validate that trends are consistent

3.5 Data compilation

Data for betting and gaming receipts is taken from ETMP. The aggregated data is analysed during the data compilation and sense checked to ensure accuracy.

3.6 Adjustment

No significant adjustment takes place within the Betting and Gaming Statistics.

4. Quality Management

4.1 Quality assurance

All official statistics produced by KAI must meet the standards in the Code of Practice for Statistics produced by the UK Statistics Authority and all analysts adhere to best practice as set out in the ‘Quality’ pillar.

Analytical Quality Assurance describes the arrangements and procedures put in place to ensure analytical outputs are error free and fit-for-purpose. It is an essential part of KAI’s way of working as the complexity of our work and the speed at which we are asked to provide advice means there is a risk of error.

Every piece of analysis is unique, and as a result there is no single quality assurance (QA) checklist that contains all the QA tasks needed for every project. Nonetheless, analysts in KAI use a checklist that summarises the key QA tasks, and is used as a starting point for teams when they are considering what QA actions to undertake.

Teams amend and adapt it as they see fit, to take account of the level of risk associated with their analysis, and the different QA tasks that are relevant to the work.

At the start of a project, during the planning stage, analysts and managers make a risk-based decision on what level of QA is required.

Analysts and managers construct a plan for all the QA tasks that will need to be completed, along with documentation on how each of those tasks are to be carried out and turn this list into a QA checklist specific to the project.

Analysts carry out the QA tasks, update the checklist, and pass onto the Senior Responsible Officer for review and eventual sign off.

4.2 Quality assessment

The QA for this project adhered to the framework described in ‘4.1 Quality assurance’ and the specific procedures undertaken were as follows:

Stage 1 – Specifying the question

Up to date documentation was agreed with stakeholders setting out outputs needed and by when; how the outputs will be used; and all the parameters required for the analysis.

Stage 2 – Developing the methodology

Methodology was agreed and developed in collaboration with stakeholders and others with relevant expertise, ensuring it was fit for purpose and would deliver the required outputs.

Stage 3 – Building and populating a model/piece of code

The statistics was quality assessed as follows:

• analysis was produced using the most appropriate software and in line with good practice guidance

• data inputs were checked to ensure they were fit-for-purpose by reviewing available documentation and, where possible, through direct contact with data suppliers

• QA of the input data was carried out

• the analysis was audited by someone other than the lead analyst – checking code and methodology

Stage 4 – Running and testing the model/code

The statistics was quality assessed as follows:

• results were compared with those produced in previous years and differences understood and determined to be genuine

• results were determined to be explainable and in line with expectations

Stage 5 – Drafting the final output

The final outputs were quality assessed as follows:

• checks were completed to ensure internal consistency (e.g. totals equal the sum of the components)

• the final outputs were independently proofread and checked

5. Relevance

5.1 User needs

This analysis is likely to be of interest to users under the following broad headings:

• national government – policy makers and MPs

• regional and local governments

• academia and research bodies

• media

• industry stakeholders

• general public

5.2 User satisfaction

The demand for the Betting and Gaming Statistics is measured by the number of unique page views which represents the number of visits during which the page was viewed at least once. Within the financial year ending in 2021, there were 142 unique page views.

Over time the Betting and Gaming Statistics have evolved as a result of information found out through consultations and surveys:

• There was a user engagement survey in 2010 which led to some changes to the statistics (for example consolidating into one publication and including historical data)

• Following this and the 2012 UKSA report, further changes were made to the statistics, which included added commentary, graphs and background information

• In 2016, the frequency of the statistics was then altered from quarterly to bi-annually as a result of a consultation

The Betting and Gaming Statistics were not up for consultation in the 2021 survey and as a result saw no changes.

5.3 Completeness

It is a legal requirement that all businesses are regulated and submit the relevant returns required. Penalties exist for non-compliance. The statistics contained in this report can therefore be considered as complete.

HMRC report estimates of the tax gap across all taxes and duties annually.

6. Accuracy and reliability

6.1 Overall accuracy

These statistics are based on administrative data, and accuracy is addressed by eliminating non-sampling errors as much as possible through adherence to the quality assurance framework. The nature of the administrative data used may mean some errors exist in the recorded figures which would impact the accuracy of production estimates.

The potential sources of error include:

• companies entering incorrect information onto return forms

• human or software error when entering the data into systems

• companies not completing their returns by the required date

• mistakes in the programming code used to analyse the data and produce the statistics

6.2 Sampling error

No sampling takes place within the Betting and Gaming Statistics.

6.3 Non-sampling error

Coverage error

The data used to produce these publications is exhaustive, and covers all betting and gaming sold under UK jurisdiction which is subject to excise duty. This means that data on MGD liabilities and receipts refers to all betting and gaming sold legally, with the exception of duty-free betting and gaming, which is not counted for this purpose as by definition duty is not paid on these goods. Coverage error is therefore not relevant.

Measurement error

The main sources of measurement error could be categorised as respondent errors and include the following:

• companies may make errors entering their information onto return forms, whether this is done on paper or electronically

• company tax return data is subsequently entered onto HMRC systems either manually or by electronic transmission, which is another point at which data may be altered due to human or software error

Nonresponse error

The Betting and Gaming Statistics is routine administrative data based on receipts and MGD liabilities that must be submitted, therefore nonresponse error is not relevant.

Processing error

It is possible that errors exist in the programming code used to analyse the data and produce the statistics. This risk is reduced through developing a good understanding of the code and thoroughly reviewing and testing the programs that are used.

6.4 Data revision

Deferments and late returns can influence the data used for the publications. For that reason, the last 6 months of data at any given time are labelled as ‘provisional’, although revisions tend to be minor. Where there are revisions they are clearly marked as ‘revised’, and information is given as to the reasons and scale of the revisions if appropriate.

Every 6 months on release of a new publication, previous data is reviewed and any revisions required are made. If revised data was not previously marked as provisional it is clearly highlighted in the statistics with a ‘[revised]’ markup within the statistical tables.

Planned revisions occur following the release of the annual receipts publication. This alignment typically occurs in the summer following each financial year and revisions are included within the next scheduled publication. Receipts are considered provisional until the publication is released.

The United Kingdom Statistics Authority (UKSA) Code of Practice for Official Statistics requires all producers of Official Statistics to publish transparent guidance on the policy for revisions.

6.5 Seasonal adjustment

No seasonal adjustment occurs within the Betting and Gaming Statistics and is therefore not relevant to the publication.

7. Timeliness and punctuality

7.1 Timeliness

The statistics are published one month after the end of the reporting period for receipts. That is, the statistics relating to betting and gaming duty received in January is published at the end of February. The statistics takes around one week to produce, with the data not being available until after the middle of the month. The remaining time is spent quality assuring the information in the statistics.

7.2 Punctuality

In accordance with the Code of Practice for official statistics, the exact date of publication will be given not less than one calendar month before publication on both the Schedule of updates for HMRC’s statistics and the Research and statistics calendar of GOV.UK.

Any delays to the publication date will be announced on the HMRC National Statistics website.

The full publication calendar can be found on both the Schedule of updates for HMRC’s statistics and the Research and statistics calendar of GOV.UK.

There have been no incidents of late publication of the bulletin since the previous Betting and Gaming Statistics Quality Report was produced in 2013. which is available through the UK Government Web Archive from the National Archive.

8. Coherence and comparability

8.1 Comparability over time

As these statistics range back to 1986, some of the duties were not in place at the start of the data. Lottery duty data is not available before 1994, MGD before 2013 and RGD before 2015. Resultantly this data is not comparable before those years.

Prior to the introduction of MGD in February 2013 there was also a licence to operate a machine known as AMLD. From April 2015, AMLD is not reported independently in the statistics and instead reported within MGD data.

8.2 Coherence – cross domain

No known issues regarding coherence between domains.

Coherence – sub-annual and annual statistics

No known issues regarding coherence between sub-annual and annual statistics.

Coherence – national accounts

The statistics are coherent with the national accounts framework, but users should note that betting and gaming duty revenue is reported on a cash basis by HM Revenue and Customs (HMRC), i.e. when cash payments are received, but within national accounts publications, such as the Office of National Statistics Public Sector Finances, revenue is published on an accrued basis, i.e. when tax liability was accrued by taxpayers.

8.3 Coherence – internal

No known issues regarding coherence between internal datasets.

9. Accessibility and clarity

9.1 News release

Link all press releases linked to the data over the past year.

9.2 Publication

The data is publicly available within the Betting and Gaming Statistics and is published at 9:30 am on the pre-announced date of release.

The Betting and Gaming Statistics commentary is published in accessible Hypertext Markup Language (HTML) format, as generated within internal UK government HTML Markdown software. The B&G Statistics data tables which accompany the commentary are published in accessible Open Document Spreadsheet (ODS) format.

Accompanying the statistics is a background and references document which includes:

• definitions for betting and gaming duties and products

• details on how betting and gaming duties are levied and paid

• methodology for producing betting and gaming duties statistics

• statistical quality information, including HMRC’s rounding policy

• hyperlinks to relevant pages where statistics users can find more information

There is also an historic betting and gaming duty rates document.

Both historical duty rates and background and references are published in HTML format.

Following major changes in October 2020, substantial formatting changes were made to the Betting and Gaming Statistics to ensure alignment with accessibility regulations for digital content from public bodies as legislated within the Public Sector Bodies (Websites and Mobile Applications) (No. 2) Accessibility Regulations 2018.

This reformatting of the Betting and Gaming Statistics formed part of HMRC’s wider accessible documents policy. Changes made to the B&G Statistics included:

• replacement of Portable Document Format (PDF) files previously used for statistics commentary with HTML documents for the same purpose

• migration of all betting and gaming duties background, references and rates information from Microsoft Excel tables to HTML documents

• migration of data tables from Microsoft Excel to ODS format

• simplification of language used to avoid jargon and clear explanations used to describe all non-decorative features

An accessibility report was first produced to identify required format changes. The overriding aim of this reformat was to improve how perceivable, operable, understandable and robust the Betting and Gaming Statistics are for all users, in line with the Web Content Accessibility Guidelines (WCAG 2.1) design principles for accessibility.

9.3 Online databases

This analysis is not used in any online databases.

9.4 Micro-data access

Access to this data is not possible in micro-data form, due to HMRC’s responsibilities around maintaining confidentiality of taxpayer information.

9.5 Other

There aren’t any other dissemination formats available for this analysis.

9.6 Documentation on methodology

Background and references to the Betting and Gaming Statistics is publicly available to users within the Betting and Gaming Statistics.

9.7 Quality documentation

All official statistics produced by KAI, must meet the standards in the Code of Practice for Statistics produced by the UK Statistics Authority and all analysts adhere to best practice as set out in the ‘Quality’ pillar.

Information about quality procedures for this analysis can be found in section 4 of this document.

10. Cost and burden

The bi-annual update to the Betting and Gaming Statistics takes up to 4 working days in total for the main analyst to complete and receive QA from other analysts, the team leader, and the person signing off the release. The annual cost, therefore, is around 8 days a year (4 days per statistics completed twice a year).

There is no respondent burden since the data is taken from administrative sources which are used by taxpayers to make their usual returns to HMRC.

11. Confidentiality

11.1 Confidentiality – policy

HMRC has a legal duty to maintain the confidentiality of taxpayer information.

Section 18(1) of the Commissioners for Revenue and Customs Act 2005 (CRCA) sets out our duty of confidentiality.

This analysis complies with this requirement.

11.2 Confidentiality – data treatment

There are no special rules for confidentiality or data treatment in these statistics.

Before going live, the statistics are classified as pre-released National Statistics, and is therefore subject to a restricted protective marking when referred to in email correspondence and is subject to the Code of Practice for Official Statistics, which is strictly enforced.