GVC and William Hill are to receive up to £350 million following a £1 billion legal battle over VAT payments. The online gambling giants took the Inland Revenue to court over a dispute on how VAT was applied to fixed odds betting terminals.

By: Mark Patrickson

The tax tribunal investigated and found that the companies had been overcharged for as long as eight years. HMRC have said that they will not appeal复古传奇sf the ruling.

Cashing in While Government Pays Staff

The timing of this legal victory couldn’t have come at a worse time. The United Kingdom is still under lockdown conditions with the furloughed workforce currently being paid 80% of their wages by the government up to £2,500 per month.

The scheme, while obviously necessary, has left the population extremely concerned about the country’s economic future. The chancellor is under heavy pressure to not implode the economy by paying out hundreds of millions every month.

复古传奇sf This situation is not as clear as you might think. There is plenty of criticism coming out regarding the furlough scheme for these huge companies. People are asking why the taxpayer should foot the bill if a firm has deep coffers.

The other argument is that businesses shouldn’t be punished for doing well and not overspending.

GVC - owner of partypoker and BWin poker platform and Ladbroke Coral high street bookmakers - and William Hill are cashing in on the COVID-19 lockdown boom we have seen.

Online traffic is up to levels not seen for more than five years. That said, William Hill reported that revenue was down 57% since the lockdown.

GVC has also begun to withhold rent payments to their landlords stating they would settle up when all of this blows over.

"We have written to our landlords to inform them and request their understanding of the decision, which will not only help to secure the long-term future of their rental incomes but also the jobs of over 15,000 retail colleagues."

Differing Opinions

It is difficult to criticise these companies as they seek to secure the jobs of thousands of workers in the most effective way they can. The economic future is uncertain and who knows how much gambling there will be going on over the next couple of years.

On the other hand, Paddy Power has decided to take care of their staff with their own money.

Company boss Peter Jackson refused to take a pay cut during these bad times but thought it was wrong to expect the government to foot the bill. They maintain that they will continue as normal because it’s the right thing to do.

This isn’t something many will expect from the gambling industry.

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