The Finance Act 2007 introduced a new duty of excise at 15 per
cent on the gaming profits of remote gaming operators. The duty
came into effect on 1 September 2007, to coincide with full
implementation of the Gambling Act 2005.
Remote gaming was defined as playing a game of chance for a prize through any kind of remote communication, for example, the internet, telephone or interactive television. Where an operator provided any of these remote communications, they were required to obtain a licence from the Gambling Commission (GC). Any operator relying on a remote operating licence issued by the GC was also liable to pay remote gaming duty. The duty was based on all profits from gaming unless specifically exempt. It also included illegal (unlicensed) remote gaming within the UK.
Excise Information Sheet 03/07 on Remote Gaming Duty gives a full explanation about how this tax works and the current duty rate.