Casino City's iGaming Pocket Directory - 2015 Edition

105 Sponsored by Visit iGamingPocketDirectory.com for more information. united kingdom & EUROPE The biggest change in Europe’s online gaming regulatory framework went into effect in December 2014, when the UK implemented its 15 percent point of consumption tax for online gaming revenue. The tax action taken by the UK is the latest in a string of moves that has moved Europe from a one-market online gaming regulatory model to a country-by-country regulatory model. The 15 percent tax on gross profits is collected on any revenue generated by bets placed in the UK. The regime also requires any gaming operator doing business in the UK to acquire a UK gaming license. Prior to December 2014, most of the big operators in England operated offshore, where they faced tax rates as low as 1 percent. The new 15 percent tax on gross profits has the potential to significantly eat into overall profits – and it’s already changing the industry in ways that were expected and ways that were completely unexpected. In the expected camp, offshore jurisdictions like the Isle of Man are looking for ways to give operators financial relief from the new tax. Also in the expected camp, some operators chose to withdraw from the UK market. In the unexpected camp, some operators are restructuring player loyalty programs to account for the new tax. Full Tilt Poker announced a 20 percent reduction in the rate at which rewards points are given to players. Full Tilt cited the new point of consumption tax as the prime reason for the change. UNITED KINGDOM & EUROPE

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