As Benjamin Franklin once said, ‘In this world nothing can be said to be certain, except death and taxes’. Everything around us, from the fun – alcohol tobacco – to the not so fun – housing, council – is taxed.
As the government knows they can make more tax money on certain things, they have recently regulated online casino taxes.
Despite the many online gambling choices, there’s actually very little international teamwork, or legal control of the industry. As a result, the UK government has introduced the new casino taxation regulation.
Ultimately, the new casino taxation regulation will mostly affect the operators of the online casinos, rather than the players. As will be explained later, there will most likely be some knock-on effects for players.
From December 2014, all online gambling companies who provide services to UK customers will have to pay a flat, 15% tax rate on their profits, regardless of where they are located.
Before the new regulation, companies could set up in UK approved places, which were usually Gibraltar, Malta, Isle of Mann, Alderney and Antigua, which had much lower casino tax rates (usually around 1%), as these companies were taxed according to where they were located and not where they operated.
This meant that casinos operating in the UK could pay a low rate of tax and make a lot in profit. However, now, they will be paying more casino tax and making less in profit, costing the gambling industry up to £300m.
But it’s not all bad news. Previously, some of these offshore companies were operating without a UK license. Titanbet Casino is a fully licensed and regulated operator in the UK market, and now other casinos will have to follow suit. Under the new rule, companies servicing UK clients need a license. This means your rights are protected under UK law.
So how do the players fit in?
While winnings won’t be affected, players will feel the effects of the higher tax. Because there’s less money to go around, the amounts of bonuses and promotions you receive might be affected. This is because the profit margins of the casinos will take a massive hit. If they don’t make their profits, it will be increasingly harder to pass on generous bonuses to their customers by way of promotions and more.
Additionally, some smaller companies may reassess their ability to serve the UK, or serve them only partially. For example, they may keep open the casino section, but close their sports betting section.
Even though the above information about casino taxes sounds bad, it’s really not.
While the UK doesn’t have a casino winnings tax on amounts players win, other countries do. In America, for example, players are taxed as much as possible by the Federal government: casino winning taxes take up to 25% (!) of a player’s win. Other places, like Germany and Australia (and now the UK) have the casino absorbing the costs of the casino winnings tax.
And it’s possible that the casino tax is a good thing. In New Zealand, for example, there is no casino tax, but also no regulation. There are no approved online casinos operating within a strict legal frame. So while kiwis can play legally in any offshore online casino providing to them, they do so at their own risk.
With over 400 online casino games, including online slots, roulette, blackjack and more, Titanbet Casino UK is an exciting and evolving place to take advantage of the tax-free casino winnings. With a wide range of payment methods, including PayPal, Neteller, Skrill and others, it is easy to deposit and get fast withdrawals. We are always dedicated to giving you the best casino experience, and have a 24 hour, seven days a week chat support team available.
Get started now – head over to our casino lobby – the tax is on us!
PT Entertainment Services Limited and its affiliates do not provide tax, legal or accounting advice. PT Entertainment Services Limited is not a tax advice expert. We do not offer tax advice. Information contained within this website, our publications, our client agreements, client communications, and oral communications are not, nor intended to be, tax advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
PT Entertainment Services Limited makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contain http://casino.titanbet.co.uk/magazine/casino-winnings-taxes.html.
Limitation of Liability
The materials on http://casino.titanbet.co.uk/magazine/casino-winnings-taxes.html are provided “as is” without any express or implied warranty of any kind including warranties of merchantability, noninfringement of intellectual property, or fitness for any particular purpose. In no event shall PT Entertainment Services Limited or its agents or officers be liable for any damages whatsoever (including, without limitation, damages for loss of profits, business interruption, loss of information, injury or death) arising out of the use of or inability to use the information, even if PT Entertainment Services Limited has been advised of the possibility of such loss or damages.