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EU Tax Policies Spell Trouble for Online Gambling Industry

Europe flag logoTop executives of online poker companies are disappointed with the gaming authorities of Europe and specifically of UK and France for setting up heavy taxation laws which are stifling their growth over a period of time. According to the CEO of 888 Holdings the online gambling industry which is still in its infancy is likely to suffer some more setbacks due to regulation of European Union’s online gaming regulations.

 

Though these regulations are likely to cause a few setbacks to the industry it will soon achieve a high rate of growth based on demand from online gaming enthusiasts who are also using them on mobile gaming gadgets like smartphones and tablets. The most popular online gambling game is poker which is undergoing a few changes due to recent upheavals in Malaysia.

 

High taxes in the UK

The market for online gaming is still uncertain in several sections of the world as governments keep changing regulations to meet social challenges. The recent UK regulations are being keenly observed by gaming companies to measure their impact on gambling revenues across the nation. As a large number of EU based gaming companies owe their earnings to UK markets this ruling can erode a large part of their revenues. All UK-based online gaming providers including 888 Holdings is protesting the new Gambling Act in the UK which will impose 15 percent tax on revenues from UK customers as it would pose new challenges to the industry which already spends a large part of its revenue on marketing.

 

High taxes in Australia

Online gaming companies are also finding it hard to survive in Australia which has a repressive tax of 37 percent which was introduced in 2012 leading to withdrawal of large names like 888Poker from the market. The current situation in UK appears to be a sign of similar policy changes by other nations as Portugal too is planning to introduce high taxes on gambling industry. With this ongoing situation, online gambling providers are worried about legal profits in Europe when new taxes will become functional in January 2015 which will bring all products and services sold on internet under value added tax. They will have to resort to furtive means like they are doing in Germany where government is yet to issue licenses for online casinos.

 

 

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