Recently released financial reports ushered by the UK Gambling Commission have revealed increased online gambling revenue throughout the United Kingdom.
A 17-percent overall increase has been noted—impacting the entire industry’s market share and raising attention from industry decision makers. While these figures accommodated for pre-gambling-act licences, the act, itself, was instated before 2014 began.
Increased Numbers, and Heightened Popularity
While such increases propose increased online gambling popularity, many United Kingdom websites have reported unilateral revenue increases with respect to off-site, brick-and-mortar establishments, too. Traditional, neighbourhood casinos are still in the game, and compared numbers are high when looking at one, distinct variable: annual revenue.
When online gambling is compared between current and previous years, online revenue has reportedly raised an astounding 22 percent, and the recorded raise will likely rise further beyond 2015. While both web-based and physical gambling locations have maintained steady scaling and expansion, dramatically rising numbers have forced new regulations. Casino operators have opted in to the UK Gambling Commission, and their proposed regulations have required access of new licences favoring modern tax laws. The tax laws, themselves, pertain to recent escalations.
A Fairer Tax System
Priti Patel, well-known Exchequer Secretary to the Treasury, has indicated a requirement for updated, fairer tax systems within every gambling establishment—regardless of physical, brick-and-mortar locations. Both online and city-based establishments will be impacted, and businesses have relocated their operations, travelling to other countries in an attempt at United Kingdom tax avoidance.
Gambling operations existing within the United Kingdom must offer a 15-percent consumption tax to remain operable and online sports betting has only furthered revenue escalation. During previous years, the sport alone has created above £25.4 billion. Approximately 30 percent of the market’s UK share is attributed to the segment’s rise, and officials will likely examine the niche soon.