e-Gaming: definition of “UK Person”

As a result of the reforms, duty will be charged on the gross gambling profits derived from remote gambling by UK persons.  A UK person will be defined, in the case of an individual, as someone who usually lives in the UK. HMRC will have the power to publish statutory guidance about what an operator must do to determine whether a customer is a UK person.
Proposed statutory guidance
– All operators should receive from the customer a declaration of the address at which they usually live before accepting gambles. If no declaration is received, the customer will be determined as being a UK person.
– When a UK address is given, the customer is determined to be a UK person. This determination stands unless and until the customer submits a non-UK address.
When a non-UK address is given, the operator should obtain the following information (which HMRC call ‘indicators’) about their customer:
–  The customer’s address associated with the bank or credit card account if one has been given to the operator.

– The customer’s contact telephone number (landline number) or a declaration from the customer that they do not have a landline. Where remote gambling takes place using a landline telephone, the relevant telephone number will be treated as being a UK telephone number unless it is otherwise demonstrated.

– The country prefix associated with the customer’s mobile phone number – where a +44 prefix denotes a UK number. Where remote gambling takes place using a mobile telephone, the relevant country prefix will be treated as being a UK prefix unless it is otherwise demonstrated.

–  The IP address of the device used by the customer when money is added to, or withdrawn from, their account (for remote gambling over the internet).

– The customer’s address shown on their driving licence where this is provided to the operator.

–  The customer’s address shown on their utility bill where this is provided to the operator.

If any two or more of these indicators return a result as the UK, then irrespective of whether the customer has provided an address outside the UK, the operator must treat that customer as a UK person for the purposes of gambling duties taxation. This is known as the ‘Two UK Indicators Rule’.

Operators must prompt customers to keep their customer account details up to date. Customers are expected to update their details every six months. Similarly, operators need to confirm their customers’ details, by repeating the steps above, within the same 6-monthly time period.