Poll: How will PoC tax impact the industry?
With the 15% tax coming into force, the industry will need to react and there are some key areas where change is likely to occur
As the UK’s Point of Consumption tax goes live this week all eyes will be on exactly how operators go about adjusting their strategies in order to keep the impact to a minimum.
This has been a subject for much debate over the past few years with many feeling the first area to be hit will be marketing spend as operators look to scale back on expensive above the line campaigns and promotional offers.
Affiliates and commercial TV and radio stations could be in line for a tough time as operators look to rein in costs while a reduction in new customer acquisition offers and inducements such as free bets could also be likely.
Some observers also expect the tax and new regulatory regime will act as a catalyst for consolidation with those unable to swallow the 15% levy hoisting a ‘for sale’ sign outside their offices.
Takeover speculation has been rife in recent months and could well be turned up a notch as operators start to get to grips with the reality of the PoC impact on bottom lines, with the bigger players on alert to attractive opportunities.
A relocation and consolidation of businesses is another potential impact although the past few weeks have seen as many firms relocating to Gibraltar as heading back to colder climes, but there are rumours of several operators considering a move back to the UK.
Meanwhile, an important element of the new regime will be the absence of competitive black market operators and the government’s “level playing field” will only be true if the regulator is able to keep unlicensed operators outside of the market.
With this in mind, this week’s eGaming Review poll asks what you think will be the main effect of the PoC tax and licensing regime. Have your say on the right-hand side of the page.