Lucky Nugget Explains What The Amendment to Gambling Act Means for Online Gamers
07 Mar, 2013, 12:00 GMT
LONDON, March 7, 2013 /PRNewswire/ --
Greater taxation means smaller rewards but what are the benefits? Lucky Nugget reveals all
The UK online gambling market is about to go through some major changes, but Lucky Nugget reveals there are both pros and cons for online players. The Gambling Act of 2005 brought in a 15% online gambling tax on top of a 23% corporation tax, which prompted many of the UK's largest online gaming operators to move to offshore tax havens such as Gibraltar, Malta and the Channel Islands.
The UK government hasn't been too happy about this, as over the course of the past seven years it has lost more than £2 billion in revenue. Now it is about to take action in an attempt to encourage these online operators back into the UK. According to recent reports, it is planning on cutting the gaming tax by a third down to 10%. However, it is also introducing a new measure that stipulates that any gaming company offering services in the UK must pay the UK gaming tax.
This tax means greater costs for online gaming companies, which, as Lucky Nugget points out, be passed onto gamers in some way with lower rewards and jackpots that could be reduced by up to 10%.
However, it's not all bad news, says Lucky Nugget. Under the new laws, all online gaming companies offering services in the UK will have to abide by UK laws and thus the industry will become fairer, safer and better regulated.
So what does this mean for UK players? Basically, the illegal gaming outfits will be eradicated. There will be less risk of fraud and money laundering sites and random number generators will be checked and rechecked on a regular basis.
A fairer, safer playing field is good news for online gaming companies too. Despite paying more in tax they are likely to benefit from an increase in gamer numbers as trust in the industry will be bolstered, encouraging more people to play online.
SOURCE Lucky Nugget