UK Point of Consumption Tax Goes Into Effect December 1st 2014

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The new 15 percent United Kingdom Point of Consumption Tax (POC) for gaming operators servicing the UK went into effect on December 1st, 2014. As part of the United Kingdom Gambling (Licensing and Advertising) Act 2014. The introduction of this bill has forced many gaming companies to no longer service UK customers due to the new cost structure caused by the POC tax. Mansion Poker, Pinnacle Sports and PokerStars are a few of the big names that have decided to pull out of the UK gaming market.

In response, the Remote Gaming Association (RGA) issued a statement to complain that the new POC tax “marks a huge increase in the cost of doing business in the British market and it would not be a surprise to see operators reviewing their investment plans and marketing strategies.” The RGA believes that any rate above 10 percent is not sustainable based off research from the accounting consultancy firm KPMG.

How does this impact players? Remaining gaming companies will likely pass on the costs in the form of increased rake or reduction of VIP benefits. Many players could also opt to use illegal gray-market gaming sites.

Read the full article at PokerNews.com.

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