Online gambling operators who have established a strong presence in the United Kingdom were terrified by the prospect of a 15% point of consumption tax being applied later this year. The news was spread this spring, when the UK gambling commission announced that it is inevitable for the new tax to be levied. There were numerous who resisted the idea and threatened to leave the British market, but the commission members clapped their hands clearly unimpressed.
They have good reasons to doubt the online gambling companies when they say that they are willing to severe their ties with the UK market. This is one of the most lucrative parts of the world for gambling and even with the new tax, these companies will still be profitable. While the debate is still raging and things could really go either way, it looks like the UK online gambling commission has delayed the implementation of this tax.
http://calvinayre.com/2014/09/25/business/uk-online-gambling-licensing-changes-delayed-a-month/ brought the good news to the operators, but their joy is probably going to be short-lived. The delay means that instead of having to pay the tax in October, they will get an additional month off, which is not a great deal if you put things into perspective. The gambling companies took matters to court and a verdict is yet to be reached, with a judge analyzing the case and expected to deliberate in early November.
The odds are stacked against the online gambling companies and if the 15% point of consumption tax is finally introduced, they will have to make a decision. Why they have their sights locked on the UK High Court, they also need to prepare an exit strategy, assuming they are willing to go through with their initial plan. The main adversary of the UK gambling commission is the GBGA organization which brings together all these companies disgruntled by the new tax.
It is worth mentioning the fact that William Hill is not among those who are fighting the project, as they have close ties with the UK government. Most of these companies are based in Gibraltar, where they benefit from better terms and have to pay lower taxes, but apparently this is about to change. The vast majority of their customers are UK residents, so by the end of October, they will need to make up their mind and prepare for the worst-case scenario.