UK Government Lost the Plot Doubling Gambling Taxes

The UK government is about to ruin your online gambling experience. There are discussions in place to double UK gambling taxes. (Image Courtesy of maybeiii on Vecteezy)

I am dumbfounded that I am in a position to have to write this new piece!

First, I would like to offer my sincere apologies to players in the UK who gamble.

You have been put through the rigmarole of online slot limits and affordability checks, and now worse is to come.

The impact of doubling gambling taxes will likely lead to three consequences for players:

1. Your choice of online gambling sites could soon diminish.

2. Your bonuses and free bets are going to become worse.

3. Reduced RTPs for online slots and land-based video slots

Why? Double gambling taxes will mean online gambling sites will need to reduce the value of their services passed down to their players.

Honestly, as an iGaming journalist who has always advised against UK players playing at non-UKGC casinos, I give up. If the government doubles taxes preventing gambling companies from the ability offer players bonuses, 24/7 customer support and other perks, I really don’t blame those players who decided to look elsewhere.

Labour Not Afraid of the Black Market Where Better Bonuses & Free Bets are the Main Attraction

The number one reason players in the United Kingdom gave for playing at black market online casinos not operating under the UKGC licensing was ‘Better Bonuses / free bets’.

This stat comes from a survey of 6,000 UK participants published by the British Betting and Gaming Council (BGC).

6,000 people took part, and 34.5% of those who said they gamble at black market casinos said they were looking for better value from their online gambling experiences. It is already a telling sign that operators in the British gambling industry are struggling to compete with black-market gambling sites.

With UK online casinos and sports books struggling to pass value down to their players, how will a new gambling tax help the situation?

I am sure you don’t need me to tell you the answer. We should all fully expect bonuses to be one of the first perks of gambling online to take a hit should the UK government go through with doubling gambling taxes.

My biggest fear is that online casinos will start to opt-in for the reduced RTP (Return to Player) rates offered by software providers for online slots. Right now, as the UK gambling market is still reasonably competitive, casinos offer the highest RTP available. However, as profits take a nose dive, it is RTPs that could also take a hit, which will just create yet another reason for UK casino players to head over to black market online casinos.

You can read more about the survey conducted by Frontier Economics and published by the BGC via my previous news piece UK Unveils Billion Sterling Black Market.

What Will the Betting & Gambling Council Make of This?

I am sure the Betting & Gaming Council will soon release their view on the topic. Usually, the organisation is quick to respond to such antics by the government, but I looked at their website news column and nothing so far. Watch this space as when it does, I will be assessing the BGC’s take on the matter.

As for why there has been no response so far, well, my guess is they didn’t bother coming into the office yesterday when news of doubling UK gambling taxes hit mainstream media. I really feel for them, too. I mean, what’s the point?

They must be banging their heads against a brick wall, wondering why the UK is intent on its continued path to ruining the UK gambling scene.

Have UK Gambling Operators Not Gone Through Enough Already?

Let’s just weigh up the expenses online casino operators have had to endure over the past year due to the UK White Paper.

• The Levvy: All UK online gambling operators must pay a 1% Levvy on all gambling revenues.

• Reduced Max Bets: Online slots can accept a maximum bet of £2.00 for players under 24 and £5.00 for players 25 and over, resulting in a loss of revenue from video slot gameplay.

• Technology Costs: The new affordability checks have meant online casinos have had to invest in technology to ensure they avoid fines from the UKGC by failing to trigger these checks. Although, some can argue that the expense of the tech implemented is tax deductable.

• Limits to Slot Features: Prior to the UK gambling reform via the infamous White Paper, UK online casinos had to request that the software providers supplying them with online slots remove all bonus buy, auto-spin, and quick spin features from their slot games. There is also a mandatory 2.5-second spin time on every slot game.

A Damming Conclusion For the UK Gambling Scene

Doubling gambling taxes is going to run the risk of creating a large-scale exodus of UK players from playing at UKGC online casinos. Where will they go? Overseas black market casinos! Some of the reasons black market casinos and sports books will appeal to these players are that they’ll get more value from improved bonus offers and free bets, better online slot returns, higher betting limits on slots, and more features available on casino games and in sports betting markets.

With that being said, there are still plenty of negatives players should be aware of by choosing to play at black market online casinos.

• Risk: As you are not protected under UK laws, you risk the casino or sports book you play at closing your account and taking your money with no repercussions.

• Fake Gambling Platforms: You could run into a fake online casino, which not only could steal your funds but also host fake games with low RTPs. When I say low RTPs, they could be 20%, 30%, 40%, or 50%.

Whether the threat of losing your money or fake gambling platforms is enough to dissuade you from playing at a black market online casino is down to you. However, it is inevitable doubling taxes will drive a larger number of players in the direction of non-UKGC casinos.

This could lead to increased problem gambling risks: All I can say is good luck to Gambleaware, because all your work fighting gambling addiction is about to go down the drain as an increasing number of gambling addicts requesting help will be saying, ‘I was playing at an overseas online casino’.