Regulatory Pressure Expected On UK Gambling

Regulatory Pressure Expected On UK Gambling ( Click to Enlarge )

The past few years have been incredibly lucrative for the UK gambling industry as a whole. Indeed, the UK market is thought to be worth around £14 billion with online gambling accounting for approximately £4.7 billion of the overall amount.

2019 and beyond could prove to be less successful, however, as UK legislators work hard to shake up gambling laws in the country amid fears that the gamblers and their families suffer in order to create these profits. We’ll have a look at ways in which the regulations might be changed and how operators might react.

Tax Increases

Gambling operators in the UK currently pay a 15% point of consumption tax, designed to collect revenue from British gamblers using online casinos based in other countries.

In order to make up for losses from other gambling regulation, amendments mainly surround changes to minimum bets at fixed betting terminals. However, the government has decided to increase this tax to 21%.

HMRC has confirmed that this increase will be implemented during 2019. Some operators have confirmed that this increase might have to be passed on to consumers because it will be too big a hit on their revenues for them to stand.

Increased Penalties

2018 saw the UK Gambling Commission take widespread action against many online casino operators. These penalties were designed to punish operators for their lack of efforts in dealing with customers with gambling problems and also issues with money laundering.

The action included charging three companies £14 million in fines, nine operators issued with Advice to Conduce letters and three others remaining under investigation. Could 2019 bring the same issues for casinos in the UK market?

UK Operators Head Overseas?

2018 saw many UK operators have their heads turned by the gambling market in the US in order to increase their growth and stability. With gambling changes on the horizon along with tougher regulation, many operators are looking for ways to compensate for the negative impacts that they will have on their UK performance. It is thought that 2019 will see more and more operators looking for ways to break into the US market.