VBANDG04000 - Unlawful gaming
The Gambling Act 2005 lists a number of conditions under which providing facilities for gaming constitutes an offence.
However, the fact that payments connected with gaming are unlawful under the Gambling Act does not mean that they cannot still be consideration for VAT purposes. This is in accordance with the general guidance on illegal supplies in VATSC.
This means that admission charges and subscriptions are always standard-rated and that stake money is always outside the scope of VAT. The treatment of session/participation charges will be exempt.
Following EU principles concerning fiscal neutrality issues on the subject of illegal supplies, if businesses set up a gaming club or centre illegally, without the appropriate Gambling Act licence or permit, their supply would be exempt, if the corresponding legal supply made with the correct licence or permit would also have been exempt. This continued to be the position after the UK left the EU.
Handling cases of illegal gambling
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)