WHAT HAPPENS NEXT?
The Bill looks likely to be implemented in
June of this year and operators must now
be quick to prepare for the compliance
issues and hit on profits. But even then
there is talk that operators may be
unable to obtain a licence in time for the
launch as a result of a short time period
between inviting applications and the
commencement date.
A KPMG report commissioned by the
RGA concluded that the tax will result in
a less viable UK market, will fail to reduce
unlicensed activity, force many firms to
go out of business, and that the proposals
are unlikely to lead to the stated goal of
increased public revenues.
And there are worries that the tax will
have a negative impact on the economies
of certain jurisdictions home to UK-facing
companies, with Gibraltar predicting
its government will lose up to £20m in
revenue in addition to close to 1,300 jobs –
a third of the total employed in the industry
– being under threat.
WINNERS AND LOSERS
The tax is expected to have a significant
effect on the smaller operators, with many
analysts predicting increased industry
consolidation. However, operators such as
Sky Betting and Gaming and bet365, which
already pay GPT of 15% on sportsbook
revenues, remain in a strong position to
take the hit.
Leading light New Jersey grabbed the headlines in 2013 when it launched egaming in the state
F E A T U R E 2013 : W H A T W E L E A R N E D
announcement by the UK Treasury that
UK-facing egaming firms will be subject to
a 15% tax on all remote gaming revenues
from UK customers. The general industry
consensus, however, instead favours a tax
on gross profits of 10% or less but looks
to be facing an uphill battle to fight the
impending tax.
02
NEW JERSEY
HAS LIFT OFF
After what seemed like an eternity
of uncertainty and speculation,
the New Jersey egaming market
finally launched in November 2013,
thus becoming the most populous
state in the US to legalise
online gambling
WHAT HAPPENED?
Trump Plaza, Trump Taj Mahal, Caesars
Atlantic City, and Bally Park Place all went
live. However, missing from the pack on
the initial launch date was Golden Nugget,
which said it needed more time, and
PokerStars, whose licence application has
been suspended by the regulator for two
years. Despite a few teething p &