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Will Online Bingo Tax Be A Jackpot For The Treasury

Posted by: BingoKath - Wednesday, Nov. 27th 2013 7:47 AM

Land bingo providers have long been complaining about high taxation, and as they are actual companies on the high street, there’s no avoiding it. Unlike the online bingo market who license brands offshore, land bingo clubs can’t avoid any taxes, but now a change to the law will mean that online clubs are as liable as real ones, and it could be a big jackpot for the Treasury.

We often see bingo sites licensed in Alderney, Gibraltar and other territories around the world, and the reason for this is taxation. By licensing a club overseas, the company avoids paying high taxation, but all that is to change as new laws are to make taxes dependent on the country of the player, not the license!

Anyone who’s anyone cannot fail to know how popular online bingo is in the UK, so popular in fact that economists are predicting that the new taxation rules could mean as much as an extra £25 million a year for the Treasury, but what does that mean for bingo players?

We all love to play for big pots online, and most will agree that companies who sell gambling services should have to pay tax, but it’s actually unlikely that the taxation will come out of the pockets of the bingo operators, as it’s more likely to be passed along to players. That could mean less generous promotions, smaller jackpots and even smaller standard pot sizes, it may not be massively noticeable, but it seems almost inevitable that it will be the players paying this tax, not the online bingo sites themselves.

The new law is likely to see taxes set at 15%, and that’s less than land based bingo halls are currently paying, but the tax will now be payable by both land based and online and mobile bingo halls. If nothing else, it might be a boost for land bingo, as it’s guaranteed to even out the marketplace.

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