The recent Budget released by the UK Government contained a nasty surprise for online bingo players. We are, of course, referring to the added taxation of free bonuses given out by UK Bingo rooms.
Free Bingo Bonuses Tax
Free Bonuses include Bingo Sign Up Bonuses, weekly and monthly promotions and free spins on slot games. This new bingo tax does not take effect until August 2017.
It will mean a radical shake-up in the world’s most competitive Online Bingo space. UK Bingo rooms engage in many bingo bonus promotional activities to try to acquire and keep players.
This bonus activity extends to ongoing promotions to enable bingo rooms to keep players. However, the UK Government will argue that it is simply bringing this new bingo tax into line with other forms of taxation on gambling betting.
Why The Additional Bingo Tax
Sports Betting companies are charged a tax on free bets that players claim. However, we feel that the Government has identified an opportunity to tax bingo differently.
This new Bingo Tax will affect bingo players more as August 2017 draws nearer. Any UK Bingo room worth its salt is already planning for a massive reduction in bingo bonuses on all fronts.
That means bingo players will have much less choice in terms of generous bingo bonuses. It also means that we will see further mergers in online bingo.
Smaller boutique bingo rooms will merge with larger, more established rooms or simply close their doors. We predict this on the evidence of the recent point of consumption tax. This places an increased 15% tax on all bingo rooms taking the play from UK Bingo players.
The new 5% bingo bonus tax is not as significant. However, it will significantly impact both behaviours of bingo rooms and bingo players in the United Kingdom.
The Tables are Turned – From Land to Online Bingo
The wheel has turned full circle. Initially, it was land-based bingo that paid unreasonable tax amounts. We campaigned against these unfair taxes. Ironically this tax was implemented by a Labour Government.
The game of the working class was taxed to the hilt by the party of the working class. It took a coalition government to undo these damaging bingo taxes. There has since been a revival in the land-based bingo market.
The current Government has adopted a stricter stance on online gambling operators. However, we do think that the Point of Consumption Tax is fair. It means that offshore gambling companies have to pay taxes on UK gambling.
However, this new UK Bingo tax is, in our opinion, a classic case of taxation. Once again, the people’s game is getting used to making up for budgetary shortfalls.
It will also be interesting to see what this will mean for certain operators who have based their entire business on the dishing out of bingo bonuses to players. We are of thinking about Cozy Bingo operators.
In the comments below, let us know what you think about this new bingo tax. We love to hear from bingo players, and this is a tax that will have significant implications on your bingo gameplay in the future.