Many punters enjoy free play but this could very well become something of the past. This is because free play at online casinos, poker rooms, and also sports betting sites will soon be subject to new regulations from the UK HMRC (Her Majesty’s Revenue and Customs).
The revisions that HMRC UK are making to its 2017 Finance Bill is actually going to amend what the definition of ‘free bets ‘and ‘prizes’ are. For as long as online casinos have existed bonuses, free play and prizes have been used frequently to attract new players and also motivate existing ones.
Currently gambling companies are not paying duty on those customers that take advantage of the free play that is offered by the majority of online casinos. UK players enjoy playing live roulette games and other casino games without the need to deposit real money. The new proposals are set to change all of that with the HMRC claiming that they will generate up to an additional £345 million in tax revenues during the 2017/21 financial years.
The original version of the Finance Bill was introduced in March 2017, and in April the UK MPs removed all free play tax provision, as well as some others, from the legislative piece. The reason given was that there was not sufficient time for those to be discussed properly (these were the weeks leading up to the general election.)
It is now thought that certain parts of the original legislation could be re-introduced on September 5th, after the summer recess, whilst others are to be amended. The new version of the bill is expected to be granted Royal Assent later on in September which will in effect leave those gambling companies that serve UK-based customers less than a month to prepare for the new tax regime.
Obviously, the big players in the industry have already voiced their unhappiness towards the new proposed tax changes as the financial burden will be enormous on top of the 15% point of consumption tax that they have had to pay since December 2014.
What this new legislation will mean for the players is yet to be seen, but it is expected as in any other industry when new tax measures are introduced that some of the cost at least will be trickled down to the players.
