The implementation of the controversial Point of Consumption Tax made all UK-based gambling operators think of an approach for resisting the increased taxes and remaining competitive on the gambling market.
The above-mentioned taxation method has been a subject of a lot of debates and regardless of operators’ resentment, it was implemented anyway.
Warwick Bartlett, the CEO of Global Betting & Gaming Consultants, made an attempt for clarifying which are the positive and negative effects of the widely disputed Point of Consumption Tax.
According to Mr. Bartlet, the current situation indicates that the rates are likely to increase instead of decrease.
The implementation of the Point of Consumption Tax made it obligatory for operators to obtain a UK gambling license, which, to a certain extent, makes them forget that the gambling industry is not concentrated solely in the United Kingdom and there are many untapped markets that can become a source of decent revenues.
What made operators particularly discontent was the fact that the UK government has become really “creative” when it comes to taxation. Market analysts suspected that UK officials wanted to impose regulations as stern as those in China, Brazil or Russia.
Once obtaining a UK license, gambling operators realize that entering foreign markets would not be really profitable since repatriating profits can be a really challenging mission.
Obviously, UK businesses have learned invaluable lessons over the years and instead of following the example of other countries that are currently changing the outdated gambling rules and regulations. The government of the United Kingdom opted for restriction of offshore financial centers.
What is more, Mr. Bartlett said that given the circumstances, new amendments are expected and taxes will be increased. Actually, Ed Miliband, the leader of the Labour opposition said that if he had the power, he would immediately introduce a black list containing all those offshore financial centers with the aim of ensuring the necessary transparency.
As for the expected changes in the tax rates UK-based operators will be supposed to pay, it is likely for the government to follow the example of Japan.
The Japanese government has adopted an innovative approach with the aim of keeping the taxpayers and prevent them from establishing headquarters in the neighboring countries where taxes are significantly lower.
Mr. Bartlett is absolutely convinced that the new government of the United Kingdom will have no hesitations in increasing the current taxes.
As a matter of fact, more and more countries are increasing the gambling-related taxes. But the curious thing is that all those countries which have increased the taxation were famous for already making their operators pay considerably high taxes. Nevertheless, those that dared to put forward the idea for implementing a tax on players’ winnings are few.
