According to the latest United Kingdom gambling news, this year will see the introduction of new higher European domestic tax regulations that could weaken the once very lucrative and profitable market for online casinos.
Global Betting and Gaming Consultants research done for the Interactive Gambling Report, show that where previously 51.3 percent of online gambling revenue was from domestically regulated markets, 2012 will see a rise up to 60.1 percent as the new laws take hold, and several markets adopt new I-gaming licenses.
Lorien Pilling, the Director of the Global Betting and Gaming Consultants touched on the topic recently when he said that “Low gaming taxes are being replaced by high taxes; single licenses are being replaced by the need for multiple licenses. As a result, the high customer payouts that made I-gaming so attractive are being reduced too.”
The worry is that gamers will feel hard done by with the new higher taxes and instead will look abroad to play in online casinos that don’t have such rigorous taxes to gamble. Mr. Pilling continued: “Casino games and slots are popular with players. If governments continue to restrict the availability of these games, players will find means of using websites that will accommodate them.”
The fear comes after several countries announced new licenses and higher taxes for players this year. Spain is one country planning to release new individual licenses, and Denmark too has already begun to do so with a 20 percent tax on revenues made from gaming.
The Interstate Gambling Treaty will also see Germany place restrictive licensing on I-gaming, and Greece has a mind to tax up to 30 percent for I-gaming licenses, as well the nerve to charge withholding tax on players winnings. A move that will no doubt be hugely unpopular, given Greece’s current state of financial affairs.
Good thing British gambling laws stay unchanged. For now, that is.
The move will certainly enrage both online casinos and gamers alike, and there are very realistic growing fears, that the seemingly weakened market will no doubt push gamers to seek entertainment in the arms of other offshore, or online casinos based abroad to escape the hikes.
It is strongly believed that the success of the latest tax and licensing changes, is fully dependent on those domestic online casinos keeping their share of players gambling. But should they choose to play elsewhere they will be throwing a spanner in the works of this mastermind plan, which could force yet another change in the European gambling laws.