Monthly Archives: October 2015

Could the “point of consumption tax” (P.O.C) be coming to North America and Australia?

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In December 2014, the UK introduced a new taxation system for gambling companies called “Point of Consumption Tax.” It was introduced to stop gaming companies taking advantage of low or tax exempt countries to base their operations. The new taxation system works by making companies pay 15 percent on the gross profits revenue from consumers located in the United Kingdom. It is a big change from the old system where the tax was based on the company’s location and not their consumers.

Due to the success of the scheme, the Australian and American Governments are considering changing their gambling taxation laws to mirror the UK. At present, there is only discussion happening, but over the next year there is a strong possibility that the point of consumption tax could be heading to these two countries.

Many American and Australian free bets companies have argued that the point of consumption tax would mean many operators would not be able to continue trading. In the UK though it has not affected the growth of the industry.

All countries can regulate the gambling industry the way that is best for themselves. With the new taxation system working well in the UK, the pressure is going to increase worldwide for more countries to follow the UK lead.

It is a difficult time for online free bets sites. With constantly changing trends regarding regulatory and taxation across all the different states and countries, it is hard for them to keep up. It has led to many suggesting the-the golden era for the gaming industry is about to come to an end. It is taking a long time but finally the regulators are catching up with the gambling companies.

The point of consumption tax is not without its problems, though. Unlike high street operators, it is difficult identifying where the person gambling is from. The top free bets companies are calling for one taxation system worldwide to make it easier for them to manage their online activities. With one system in place, it gives the companies a certain outcome so they can make an intelligent and informed plan on the way forward.

In the US, online gaming is legal in three states currently. These are; Delaware, New Jersey, and Nevada. There are a large number of states though looking into the possibilities of making gambling legal within its jurisdiction. With states desperate to generate more tax revenues, it is an attractive proposition to legalize gambling. At present, there is a large percentage of US consumer utilizing online and sports books to gamble illegally. Due to the size of the problem, the government has decided not to pursue violators due to the cost and manpower needed to carry this out.

Over the next year, the gambling industry is going to change dramatically. Online sites such as free bets Australia and other US operators are going to be closely monitoring the situation.

 

Article courtesy of John Hawthorne who is as passionate about sports writing as he is passionate about writing about world news. As a sports journalist, John Hawthorne has all the elements needed to keep an informed and up to date review of the events going on in the online gambling world. Punters are particularly keen with his reviews on freebets.com.au.

 

 

Could the Online Sports Gambling Community be Affected By The Recent Changes To Fantasy Sports Sites?

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The fantasy league sports industry has grown at a rapid pace over the last decade. It has led to more and more scrutiny from lawmakers that has grown over the last year. Congressmen have been taking legal action and asking for more safeguards and further regulation in the sector. Even the FBI and Justice Department have opened investigations into if the sports sites that offer this service are violating federal law.

One of the leading companies that provides fantasy leagues is DraftKings. There have recently been allegations that the company has been cheating their punters out of money. It is why the calls for tougher regulations have been mounting in recent months. There are calls for this industry to be classed the same as traditional betting strategy firms to protect the people playing the games.

Currently, the fantasy league sports industry is not classed as a betting strategies site. It is as long as have key attributes that include; skill-based contests, set prize pools, and they do not rely on single sports events outcomes. The leading sites have interpreted that this exempts them from the current gambling laws. They have designed games to adhere to the definition of fantasy sports.

There have been calls for Congress to reexamine how the industry is regulated. Many states that have legalized gambling laws are angry that fantasy sports are exempt from the law that regulated them. With the Justice Department and FBI looking into if the fantasy sports sites are violating the current law, it is an uncertain time for this industry.

Even if the current federal laws or its current interpretation does not change, it is getting more complicated by the day for sports fantasy sites. One of the main issues is going to be what laws are passed by each state government. In Nevada, the capital of gambling in the USA, the best sports betting system firms are pushing for a further restriction to this industry citing unfair competition.

It is likely that states will go down the route of passing laws that will mean that fantasy sports operators will be taxed the same as a casino. The current taxation laws mean that companies can offset their taxes by reducing their profits through including the marketing costs. If the laws are changed to meet the current casino taxes, it will mean that they will be taken on gaming revenue and not their profits.

If gaming licenses are introduced into the industry, it will certainly hit the profits of all sports fantasy sites and could even close some them down. If the laws match what casinos have to follow to trade, there will be lots of additional expenses needed to be paid for. Regulatory costs can count for up to 20 percent of the total expenses. It could force all the small operators to close down, with only the larger more established players being able to cope with the changes.

If different laws are introduced in each state, it will mean operators will have to split up their operations. They will not be able to offer huge national prizes as they will not be able to share the entry fees and pool prizes.

Fantasy league sites are becoming the best sports betting system for punters. Over the next year, it is going to be a tough battle for these operators. If government regulation is introduced into the industry, many of the startup will cease to exist. The threat is real and only time will tell if this sector continues its meteoric rise in the gaming sector.

 

Sports Journalist John Hawthorne is keen on helping punters profit from using technology for their betting. John is constantly reviewing betting strategies that claim to use proven algorithmic systems. Follow Hawthorne’s insights at Simply the Bets, sports betting strategies that work.