New bills and regulations turned Britain’s gambling and betting industry into a key contributor to the UK economy.
UK.- New regulations in the UK in connection to the gambling and betting industry resulted in a boost to the nation’s economy.
In 2014, a new Gambling Bill came into effect accompanying the high rise in online casinos. Under this legislation online casinos are now required to pay 15 percent of consumption tax and to apply for a license from the Gambling Commission. Operators also had to make changes to their sites to be in correspondence with the rules and regulations and in turn, approved by the regulators. Some of the developers even had to become a new brand.
The Remote Gaming Association stated that a tax rate higher than 10 percent makes for a significant increase in the cost of operating in the British market, so companies that are in the industry could benefit from re-evaluating their position. Even though it is still unknown whether the new regulations will have a knock on effect for UK players, with those operators remaining in the UK increasing costs to offset the tax, the money still goes into boosting the economy.
The 25 percent higher tax rate for fixed odds machines is expected to cost the gambling industry £335 million (US$481 million) within the next five years. The gambling industry is still the one sector in the UK that pays more tax than it does generate profit, although it still makes a massive profit of around of £600 million (US$861 million) and contributes around £2.3 billion (US$3.3 billion) to the UK economy, making it the biggest driving force.