31.10201821% Online Casino Tax Could Spell the End of This Industry
The 2018 budget was always going to be a big deal. It was touted as being the last budget before Brexit; the last budget, potentially, while the UK is still a part of the EU. There were big changes expected and that’s exactly what we got, but while there were positives for those on a living wage, those in the higher tax bracket and even those in the lower bracket, there were also some negatives and one of those was the switch from a 15% casino tax to a 21% casino tax.
What This Means
Few UK gamblers will even know that there was a 15% casino tax in place, but there was, and it’s one of the biggest factors in changing the UK gambling scene over the last few years. If you’re wondering why your favourite online casino (Spin Palace and Royal Vegas are good examples) went from accepting UK players to restricting them, it’s because of this tax and other strict tax laws.
And now that the percentage has moved to 21, it seems likely that more online casinos will make the switch and stop allowing UK players to signup. It only makes sense—21% is a huge tax on pay on casino revenue, and it’s the same rate that will be forced upon online bookmakers.
To understand why this is such a big deal you have to understand how these sites operate, and the fact that profit isn’t always easy to come by. Casinos run a lot of promotions, they give away a lot of money and they have smaller margins than many think. Sports betting sites have even smaller margins, because it only takes one major expected outcome to occur and they can run at a loss.
If England run deep in a major tournament, if the favourites win the Premier League, or an English team win the Champions League, they could lose money, which makes this percentage another big loss.
It’s clear that the UK government is not happy with the situation and they are tightening the noose. Whether that results in the death of the UK online gambling industry or not remains to be seen.
Nominations Open for the 2019 Global Gaming Awards23.10 2018
Fortune Factory Studios is Acquired by Microgaming16.10 2018
Winners Revealed at the Global Gaming Awards 201810.10 2018