Changes in legislation as a result of the 2014 Gambling, Licensing & Advertising Bill in the latter stages of last year has seen online casinos become liable for tax at the point of consumption. All those who wish to continue operating within Britain have to pay this tax and are required to procure a licence from the UK Gambling Commission.
With a tightening of the political framework that online casinos work within and the greater costs involved – the tax should net the British Treasury ?300 million a year – it is not surprising that speculation is rife that certain companies are considering ceasing UK operations. The new governmental policy has drawn the ire of numerous companies, and it looks like their fight against the state will dominate the betting landscape of 2015.
Members of the Gibraltar Betting and Gaming Association (GBGA) believe that this new regulation is in breach of European law and could actually lead to a black market in the industry as companies from far reaching locations, exempt from the 15pc tax, can offer customers far more enticing deals. Analysts suggest that there are numerous companies, all with a lot to gain from a dropped bill, willing to fight the government on this.
However, it is not all doom and gloom for the British gambling industry. Even though you would expect companies to be put off by this new found tax, Get Lucky is bucking the trend. Not only are they entering the market in the near future, but they are advocates of the policy as it increases player protection and levels the playing field for all casino operators.
Online casinos are two-a-penny. The sector has reached market saturation with all the companies offering the same goods and service with very little to differentiate themselves from the next casino operative. However, Get Lucky, who have the advantage of coming to market much later than their competitors, are trying to be innovative as they strive to carve out a name for themselves.
Sources tell us that they are focusing plenty of their efforts on creating an extremely beneficial loyalty scheme, which is to work in a similar way to frequent flyer miles. If they manage to pull this off then they could really change the face of gambling in the UK.
Your scepticism is well founded. Don?t most online casinos offer clients some sort of loyalty points for those who gamble? They do, but, and this is a big selling point, they do not allow you to turn these points into real cash. Rather, most online casinos will give you bonus money that comes with ridiculous wagering sanctions. Would you rather loyalty was rewarded in hard cash or fictional money that requires you to win X amount of times before you are allowed to withdraw it? It is very much a novel idea and something that could revolutionise the British gambling industry.
It is going to be a hugely interesting year for the betting industry. We?ll see some of the bigger companies butt heads with the government. If that is the approach that they decide to take, then it will be costly, and these costs will be passed on to us, the consumer. However, at the other end of the spectrum you have new companies, who are trying to bring innovation to a somewhat lagging sector. So, all in all, it is going to be a hugely exciting 12 months.
