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dec
21

UK online gambling sites soon to say goodbye on Free Play

Tags: United Kingdom.
Posted on Wednesday, December 21, 2016 by "T".

Free play is simple to understand - you get the chance to play games by the casino for free, no money involved. For now, gambling operators are not required to pay taxes on wagers/bets placed by customers who are availing their free play offers.

In the UK, free play offered at online poker sites, online casino sites, and even sports betting websites could very well be a thing of the past, and these gambling sites may have to find other ways of attracting and retaining customers.

The non-ministerial department of the UK Government Her Majesty's Revenue & Customs (HRMC), which is the British equivalent of the Internal Revenue Service (IRS), have proposed a new bill for next year called the 2017 Finance Bill, stating that online gaming companies shall be required to pay taxes on bets placed by customers who are betting for free. This means that the gambling operators shall have to pay the same amount of tax on any given bet as if the customer had placed the bet with their own money.

According to HMRC, this should generate about $50 million extra in revenue over the upcoming 2017-2018 tax year, revenue that would otherwise be lost.

This will be implemented starting on August 1, 2017.

Here is the statement from HMRC about the bill, "This will ensure where a customer makes use of an offer that allows them to gamble for free, or at a reduced rate, the operator will, in certain circumstances, be required to account for duty on the amount that the consumer would have paid without the offer. The definition of ‘prizes' will also be amended to ensure that operators cannot use the value of freeplays given as prizes to reduce their dutiable profit. These changes will have effect for accounting periods that begin on or after 1 August 2017."

This move will most likely not be good for the gaming operators, so it will be expected that the result is that online poker sites, online casino sites, and sports betting sites will cease to offer free play to their customers.
This regulation will not only apply to online operators within the UK, but also offshore websites who are licensed to operate within the UK.

Source: https://uk.pokernews.com/news/2016/12/new-regulations-could-see-free-play-value-reduced-26031.htm

 


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15 comments for "UK online gambling sites soon to say goodbye on Free Play"

 pochui12/21/2016 11:40:00 AM GMT
wow what a joke, soon gambling operators will have to pay tax on their customers imaginary gambling, dudes will win millions of dollaros in their sleep, once they wake up they will have to call the taxmen and report on which site they won those million and that site will be taxed... nice, real nice.
 erru910712/21/2016 12:10:44 PM GMT
I think this could probably lose the UK more money in the long run since free play offers is probably the way that sites earn the most customers. Because of that, most sites will probably just exclude UK members from joining their sites and keep going with the free play offers to other players. This means less actual plays from UK members and in turn less taxes being paid to the UK government.
 dule-vu12/21/2016 12:15:25 PM GMT
this is so stupid and cant believe what people can invent!in future we will pay air,just because we breathe!but in last sentence we can see that this will not be for sites in UK or offshore sites who operate in UK,so nothing big for UK players!
 Mober12/21/2016 7:26:45 PM GMT
It gets worst and worst by the day.
Thats is what happens when people with no clue are getting involved with everything.
Politicians at their best with stupid decisions. Many times thought they are just
acting from some other peoples interest, not caring about public Smile
Nothing new, just move on Smile
 doubletop77712/22/2016 9:10:51 AM GMT
It would be a mighty shame if free play is not allowed to continue. A lot of people like to play on here and just have a catch up with friends over a game of cards. I really hope this doesnt happen
 dule-vu12/22/2016 1:30:08 PM GMT
dont understand what they have if you play for free!if nobody deposit money,site dont give you money,how the hell they can earn from that and take tax!?in this world we have lots of idiots in every country and goverments dont know how to take more from people!
 lord99612/22/2016 2:35:07 PM GMT
this will kill online gambling(((
 IceQueenAce12/23/2016 4:53:51 PM GMT
TBH if sites are using free bets to reduce tax liability, they SHOULD face tax/consequences for this.
You cant open a newspaper these days without reading about top companies not paying tax owed. Gambling sites shouldn't be exempt from that.
 Mober12/23/2016 8:12:35 PM GMT
How much can they save this way from taxes?
I dont know what is going on or how the specific system works,
but how many free bets can they give in order their winnings to have an impact, in the amount
they are paying as a tax. Cause i really doubt it is up to 50 millions, they are claiming Smile
Unless it is working in another way Smile
 Tony_MON7ANA12/23/2016 8:47:18 PM GMT
I had a chance to skim through the "Tax treatment of freeplays in Remote Gaming Duty" online at: http://www.gov.uk/government/uploads/system/uploads/att...
If I understand it correctly, (a) the first use of freeplays only will be subject to taxation and winnings will only be brought into the tax or duty calculation at the end of the rewagering process, (b) games that are free to play for all participants won’t be subject to the remote gaming duty, and (c) any prizes realized from these games won't be subject to the duty calculation either.
 TheMachineQC12/24/2016 6:21:09 AM GMT
Well, this could be good for the players in a way because these free play offers are often just a way for casinos to add huge wagering requirements to your winnings so you can't cashout when you win.

I don't know how it is in the united kingdom but it seems like the laws all around the world around gambling and online gambling are changing, hopefully we will keep some freedom going forward though... damn governements!
 pochui12/24/2016 8:45:49 AM GMT
well i call me robin hood or santa clauss bu i am really against taxes, actually all kinds of them, if there is a loophole in the tax system- use it, if there are more- use all of them, if you have any chance to not pay taxes and risk small fine if you get caught- take the risk, taxes are the single biggest expense out there.
 dule-vu12/24/2016 2:04:33 PM GMT
Posted by TheMachineQC:
Well, this could be good for the players in a way because these free play offers are often just a way for casinos to add huge wagering requirements to your winnings so you can't cashout when you win.

I don't know how it is in the united kingdom but it seems like the laws all around the world around gambling and online gambling are changing, hopefully we will keep some freedom going forward though... damn governements!


as I see TheMachineQC you didnt read this news,because this text is about tax that they want to take for playing for fun,not for free offers!in first sentence is explained everything:Free play is simple to understand - you get the chance to play games by the casino for free, no money involved.
so problem is when you play for fun and they want to take tax from that,even no real money is in!
 Mober12/24/2016 9:03:42 PM GMT
They will change the existing laws, vote new ones, everything in their power to get
more money.
And this can happen with any new government that steps up every time.
Sick process for everything.
All the good reformations are always promised before the elections.
After the elections, they are like... Who are you again ??? Smile
 dule-vu12/25/2016 2:34:39 PM GMT
probably got thumb down from person who I respond on post,but this happen when people dont what they talking about and write just to write!and its not first time that he answer like this and that this dont have much with topic and news,but ok!

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