The past few years come with significant changes in the gambling sector. Operators in the gambling industry have registered decent profits in the past. It is estimated that the British gambling industry yields have reached £15 billion. As much as these revenue amounts have been increasing in recent years, legislators have realised that some advances made by gambling firms were hurting local gamblers and their dependents. In light of this, some bills were drafted and passed in 2018, which will be implemented by gambling regulators as the year unfolds.
Lowering of FOBT Maximum Stake
One of the central policies aimed at curbing the gambling addiction problem is the reduction of maximum wagers at fixed-odd betting terminals, also known as FOBTs, from £100 to £2. These new rules were arrived at after it was established that FOBTs caused more harm than good to society. These new rules are poised to improve, if not solve, the negatives associated with gambling.
Increase in Point-of-Consumption Tax
Gambling operators have been subject to a 15% point-of-tax consumption tax, which was introduced back in 2014. With the government reducing the maximum betting stake, local lawmakers have also made their intentions known to increase the tax amount to 21%. This increase in tax, combined with other regulations, could see the government lose close to £1.1 billion in the next five years.
The ripple effect of these regulations has made some operators venture out to overseas markets. Some are headed straight to the US, after the recent announcement by the Supreme Court to halt the ban on sports betting. Examples of betting companies which have expanded to the US include William Hill and 888, who have millions of active customers. This expansion started in 2018, and more operators are expected to follow suit in 2019. Based on current projections, the British Government should consider evaluating the suitability of these new rules.