August 30, 2018
More often than not, an online casino entices the gamer with free spins, casino welcome bonuses and deposit bonuses. In the past, you would frequently see casinos who offered a bonus without ever making a deposit, these however, have become a rarity.
The UK’s tax authority, Her Majesty’s Revenue and Customs (HMRC), applied new regulations which has led to many casinos removing these no deposit incentives. Players have felt the biggest pinch at the no deposit casino bonuses. It’s expected this change will have a substantial effect on the online casino industry.
The aim of the taxation seems to be to deter online casinos promoting a sense of ‘free’ casino use. The Finance Bill 2017 enforces spins to be subjected to a tax called a General Betting Duty. So, in return, casino operators would be liable to pay a 15% tax on discounted or free online bets. Because of this, no deposit bonuses are disappearing from online casinos. It’s important to note, the operator will be subject to tax, not the player.
Chief Executive of the HMRC said, “This measure intends to bring the tax treatment of free plays for remote gaming more in line with the treatment of free bets under GBD.”
Head of Communications at William Hill online casino, Ciarán O’Brien stated, “The industry has been hit by more than £500m in additional taxes in recent years, this is another hit we could do without.”
Online casino consumers love no deposit casino bonuses. Whether it’s a veteran casino player or a newbie, no deposit casinos have always been a huge draw. For a new player, the concept of ‘no deposit’ means it’s not as risky. If you aren’t comfortable or knowledgeable of the games, this form of bonus allows you to play and learn the ropes. Maybe even win cash without depositing your own, hard-earned moola.
Following on from these tax regulations, many online casinos are now using other methods to entice their gamers, from social media to promotional offers like more free spins, prize giveaways or an overflowing welcome bonus. These rules and policies implemented by the Finance Bill must be followed by online casinos overseas who’re licenced to operate within the UK.