September will be a big game for those who operate an online gambling company that serves UK residents, but for the wrong reasons. The British authorities have announced that September 1 will mark the day when the new gambling Bill will be introduced and a 15% tax levy on profits will also be enforced. This is in fact the top reason of concern for those who run such ventures and there are some who claim that as a result of the new tax, they will have a hard time to simply stay afloat.
There are many who assume that since the house always wins, it is merely a formality for online poker companies to make a lot of money. The idea is that players will lose on the long run, which means that all this money will go to the casino or poker rooms’ coffers. This is only partially true, because the ventures have their own operating goals and only a fraction of the money wagered is actually won by them.
2014 has been a brutal year especially for those who run sports betting businesses, as overall punters won much more than they usually do. Things are far more straightforward when it comes to online poker, because these companies charge rake and regardless of who wins and loses, they will get their fix. This is exactly what the UK authorities are trying to emphasize, claiming that the new regulations will actually help those who run a legal venture.
10 years ago, the gambling act was passed and it had serious consequences, some of them unintended and poker companies were most affected. Some ran out of business, but the vast majority found a way to adjust and it is only fair to assume that the same will happen in September this year. It makes no difference whether a poker room is based within the country or overseas, because everyone will need to adjust to the new regulations.
Even though poker rooms are claiming that the new regulations will drive some companies out from the United Kingdom, Philip Graf, Chairman of the Gambling Commission thinks different. He has a point when he says that these ventures are unlikely to miss out on the great opportunity of tapping into the immense potential of the British market. There are millions of potential customers to attract and it would be a mistake for poker rooms to forsake this lucrative market just to avoid the 15% tax.