Online Bingo Moves Outside UK
It is a matter of great interest to many as to whether, or not, the rumours abounding that online bingo and betting sites are now seriously considering moving outside of UK operation and going abroad true or not.
If the rumours are correct, a large part of the blame must be thrown on the foolishness of the UK government for increasing the tax from 15 to 22%. Although they are actually stating that they have actually reduced the tax on bingo!
While the tax increases have been the talk of the country for weeks on end, upsetting hundreds of thousands of people, players and operators alike, the Government has taken the stance that they have reduced the tax not increased it! 15 to 22% is actually a reduction in tax? Well not quite, according to the government, Treasury are saying that the government’s position is that the bingo duty increase to 22% should be considered alongside the removal of VAT announced in April. “Bingo’s effective tax rate is now 22%, down from an estimated rate of approximately 25% prior to the budget this year, and down from as much as 35% in 2003!
Well, as correct as that may be, anyone with any experience knows governments can dress figures up to say just about anything, rearranging statistics to say anything they like. As Treasury restated, the recently announced tax measure in the budget actually represented a lower tax rate than ever before but people just don’t see it that way, and its people who vote, the government needs to remember.
For instance though some people may be sorry to read that the great chef, Gordon Ramsay’s restaurant empire has seen a profit drop of around 90%, do people care anywhere near as much about that as the loss of their community involvement and social contact they get through with Bingo. Of course not!
Possibly, the big problem with the government’s attitude to bingo is that it sees it as just another form of gambling possibly? Or, more cynically, is it the fact that bingo is such an easy cash cow to milk?
Or is it mainly competitive pressures that may be forcing some bingo organizations to look to overseas operations? There are certainly a fair number of competitors popping up everywhere within the online bingo business and many established companies are feeling the pressure. Well, that type of pressure is almost definitely involved but certainly, in most experts views, is not the only reason why some (or many) companies may make a move overseas.
Mr. Ralph Topping, CEO of William Hill, has hinted to an online gaming magazine, that they are possibly considering moving operations to another country – moving both internet and phone operations that is.
Are the rumours correct or not – that is the big question? If they are it could very well be only the beginning of a very big bingo landslide.
