More UK Taxes

[-Shay-]

Bonuses and "free bets" to be taxed in the UK.

[JackTenSuited]

I may be an idiot, but I can't work out how you tax a free bet? it's a loss to the bookie?

[LukeC]

If you give a customer a £10 bingo or casino bonus, and they lose it, currently (in the UK) it's 0 in terms of gross revenue for the operator's POCT obligation. In future, it sounds like it will be treated as £10 gross revenue for the operator's POCT obligation - thus an additional £1.50 cost. This already happens for sports free bets. Or more drastically, giving someone a £1000 casino bonus that they lose would cost the operator £150 in tax.

It's almost certain to affect casino and bingo bonuses across the board. Particularly casino, where for high bonus amounts, the tax is colossal vs the expected bonus cost. In bingo, it's still a very high % increase vs the current real bonus cost.

[TheGooner]

A good question JackTenSuited and I like LukeC's explanation of what they are/were thinking ...

However, the "free bet / deposit bonus" still are costs, as are the POCT taxes.
So I still can't shake the feeling that this will end up a zero sum game overall.

However, what it might do is result in more direct tax to UK, and less tax to the domicile base of the companies (Malta / Gibratar?)

[universal4]

Thanks Luke,

Wow I agree this would change things accross the board concerning bonuses.

Rick
Universal4

[Renee]

I spoke to my CEO about this and he said they haven't said they are planning on taxing "free bets" just yet, but that they want to make it an even playing field, so it's possible they will stop taxing the free bets for sports etc to make it fair.

Very interested to see how this will play out.

[Mikew]

I do recall having a conversation with an operator last year about this, just don't remember which one exactly.
This system is already active in the Danish market and regulated operators in Denmark have an extra Tax to pay on bonuses offered to players. Casino only, not sure about sports betting.
Don't want to see that happening in the UK as well.

[betarades]

This kind of taxation, to bonuses, will finally be enforced to all countries. That's for sure. They try to tax everything in gambling.