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New UK Gambling Regulations Will Affect Players

uk-taxThere has always been one thing that UK based online casino players could rely on, and that was having a massive array of casinos at which they could play at. With all of the major licensing authorities and gambling jurisdictions being recognised by the UK Gambling Commission there has never been any player restrictions in place for UK based players.

However, all of that is about to change for a major change announced by HM Customs and Exercise will shortly see the introduction of a point of sale gambling tax, the like of which no online casino operator, operating outside of the UK has ever had to pay before.

History of UK Betting and Gambling Taxes

If you have a long enough memory you may recall that many years ago anyone placing a bet in a betting shop would be forced to pay a betting tax of 10% either at the time of placing that bet, or if tax wasn’t paid at the time of placing the bet the bookmaker would deduct 10% from the winnings.

At the time this expensive betting tax did force a lot of companies to move their betting and gaming operations offshore, and companies such as the Victor Chandler did this and could offer their customers a tax free betting environment.

It wasn’t long till all major betting companies moved offshore and could offer their customers both online and telephone betting markets free of any type of tax. The UK finally got wise to this and eventually in a very unusual move they abolished betting tax payable by punters.

The companies that operate online and telephone as well as land based betting shops based in the UK have to pay tax obviously, and this has always put them at a disadvantage as their overheads along with the tax they pay is much higher than those based offshore in tax havens and low tax areas such as those offered to Casinos Licensed in Malta and Gibraltar.

This low tax regime has been tolerated by the UK Government for many years now, as being part Europe the UK has been obliged to allow and accept gambling sites licensed in any European member state to freely advertise their online gambling offers in the mainstream media.

However, ever eager to raise more tax revenue, and as the number of online casinos in particular that are licensed and regulated in the UK is minimal, a new point of consumption tax is now going to be levied on all casinos who accept and allow UK based players.

This is going to have two major knock on effects, for all of those online casinos that hold a gaming license in one of the stringent and respected gaming jurisdictions are going to either have to pull out of the UK market place or remain open for business to UK players and then be forced to pay the 15% tax imposed.

There is a slight and some would say major downside to this new tax regime, and that is that online casinos that do not hold a gambling license or are licensed in places not renowned for their strict regulations or licensing procedures are simply going to try and mop up the players no longer able to place at sites that have pulled out of the UK market place.

They will not pay the 15% tax, as there is no way for the UK Government to chase after them and claim what is due based on the far off places they are based in.

The vast majority of those casinos are very baldly run sites, which many experienced players refer to as clip joints, and this is where UK players do need to be very careful as by signing up to any casino that is licensed in such a jurisdiction they are not going to get the added level of protection offered by those Casinos Licensed in Gibraltar and Malta.

Online Casinos Already Locking Out UK Players

It is not a surprise to find out that a lot of casinos that have been operating and offering their range of games to UK players for many years now have finally chosen to pull the plug on those players. A 15% gambling tax is a huge amount of cash to pay with online casinos usually operating to the lowest profit margins due to competition between sites.

As such if you have just found out that one or more of your favourite casino sites is no longer allowing you to access your account and play then please, before you simply sign up at the first casino site you come across that will accept your gaming action, have a look through our Checklist for UK Based Online Casino Players.

You will need to ensure any site still offering you a range of casino games that can be played for free or for real money is offering, fair games, fast payouts and the usual levels of player protection that has been offered by many top rated casinos for many years now. Failing to play at a site that ticks all of the right boxes could see you being scammed or cheated so be wary.

Casino Games UK Players Enjoy Playing

It is not all doom and gloom through with this new UK Gambling Tax for you are still going to find plenty of casinos at which to play at. Many of our approved and reviewed casinos are still offering UK players a wide range of games, bonuses and a first class gaming experience.

Should you now be on the lookout for a new site to play, then head on over and take a look at our guide to the Best UK Online Casino Games, it lists an overview of the most popular online casino games available to UK players and will enable you to hunt down and pick out a new casino site at which to play that offers the high paying games and the ones you will be familiar with.

Comments

  • George August 8, 2014 at 11:20 am

    Thanks for putting this article together. In my opinion this new point of consumption tax is going to be terrible for the gambling sites and players alike.

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