First of all, you shouldnt care much about this if you live abroad.
UK laws are not global laws. No country can force others to comply with its laws.
Imagine this. You live in Saudi Arabia where they cut people's heads for car theaft. The rest of the world doesnt have to cut people's heads for car theft.
On the other hand, many countries have a stronger voice in certain matters and could ask for others to comply. For example, more or less, the US managed to stop the vast majority of bookmakers from accepting US citizens as clients.
As far as it concerns the Irish company, you have to give the name. Is it a bookmaker, or an affiliate?
If it is a bookmaker, a non compliant operator, then I suppose that the UK is strong enough to implement this law in Ireland as well. (Somehow I believe Ireland with come with the same law very soon). If it is an affiliate, then or a critical partner, then this Irish company has nothing to be scared of, because affilaites and critical partners are outside this law for the time being. However, this is gray zone for some.
new point of consumption tax in the uk
- arbusers
- Administrator
- Contact:
- Karma: 628
- Hoppy
- Gaining experience
- Karma: 5
Post
Re: new point of consumption tax in the uk
Thanks for your reply.
I care because I'm about to invest in the Irish company, (it's a normal company - not a bookie) the whole company's business idea is built on promoting betting strategies with certain bookmakers in Costa Rica, to UK people. If the company have to stop promoting these betting strategies to UK people, they will go bust. I'm sure they get a percentage of turnover from the Costa Rica bookies.
My question is not so much about the Irish company, more regarding, what can UK Gaming Commission do about Costa Rican bookies, without bookmakers licence, that are allowing UK people to play? This could be something more bookies will use as a solution to avoid the Point of consumption tax, since Costa Rican bookies might be the only ones who could cater for UK customers, (apart from bookie agents..)
One of the more famous Costa Rican bookies without a licence is 5dimes.eu
I care because I'm about to invest in the Irish company, (it's a normal company - not a bookie) the whole company's business idea is built on promoting betting strategies with certain bookmakers in Costa Rica, to UK people. If the company have to stop promoting these betting strategies to UK people, they will go bust. I'm sure they get a percentage of turnover from the Costa Rica bookies.
My question is not so much about the Irish company, more regarding, what can UK Gaming Commission do about Costa Rican bookies, without bookmakers licence, that are allowing UK people to play? This could be something more bookies will use as a solution to avoid the Point of consumption tax, since Costa Rican bookies might be the only ones who could cater for UK customers, (apart from bookie agents..)
One of the more famous Costa Rican bookies without a licence is 5dimes.eu
Last edited by Hoppy on Wed Oct 29, 2014 2:11 pm, edited 1 time in total.
- arbusers
- Administrator
- Contact:
- Karma: 628
Post
Re: new point of consumption tax in the uk
If this company is not a bookmaker, then they have nothing to worry about. The UK gov will probably come back with a new legislation about affiliates and critical partners in the future.
The maximum the UK could do to these CR bookmakers is limit the internet access, or force e-wallets/banks to stop offering services to them.
My point of view, is that the UK licence will not destroy the UK gambling scene. I m about to write an article about it as soon as those people with 5 pms per day allow me to.
Thanks.
The maximum the UK could do to these CR bookmakers is limit the internet access, or force e-wallets/banks to stop offering services to them.
My point of view, is that the UK licence will not destroy the UK gambling scene. I m about to write an article about it as soon as those people with 5 pms per day allow me to.
Thanks.
- arbusers
- Administrator
- Contact:
- Karma: 628
Post
Re: new point of consumption tax in the uk
I believe you ll find your answers in page 19 of this pdf doc.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/229993/remote_gambling_summary_of_responses.pdf
Thank you.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/229993/remote_gambling_summary_of_responses.pdf
Thank you.
- Skaggerak
- Pro
- Karma: 1
Post
I'm very green in comparison to most posters here,that said it surprises me how many are instantly planning on moving to agents without hesitation,I'm getting a hint of naivety from it.Granted I know between little and nothing so will gladly accept a counter argument here,I understand they have clean records and some in here may have traded 000's with them,it could just be a case of me being my instinctively risk-averse self.
I'd like to be able to fully trust an agent as things are only beginning to take shape for me using the Asian sharps,if I do link up with one I will probably begin using less operating capital as a safety precaution.I'm also contemplating the idea of trying to trade on Betfair but that's an entirely different and daunting prospect.
Re: Pinnacle, SBO - GONE. WHAT NEXT?
This.BOOYAKA wrote: arbitrage is supposed to be risk free. no matter which way you look at it if you deposit say £30,000 with a betting agent and they disappear what can you do. there is risk involved.
I'm very green in comparison to most posters here,that said it surprises me how many are instantly planning on moving to agents without hesitation,I'm getting a hint of naivety from it.Granted I know between little and nothing so will gladly accept a counter argument here,I understand they have clean records and some in here may have traded 000's with them,it could just be a case of me being my instinctively risk-averse self.
I'd like to be able to fully trust an agent as things are only beginning to take shape for me using the Asian sharps,if I do link up with one I will probably begin using less operating capital as a safety precaution.I'm also contemplating the idea of trying to trade on Betfair but that's an entirely different and daunting prospect.
- Hoppy
- Gaining experience
- Karma: 5
Post
Re: new point of consumption tax in the uk
So all these bookies that are now closing UK accounts, why don't they open up a new company in Costa Rica and then they could cater for UK accounts that way?
- arbusers
- Administrator
- Contact:
- Karma: 628
Post
Re: new point of consumption tax in the uk
I believe that most of them will get a UK licence in the end.
- jerms
- Gaining experience
- Karma: 2
Post
I’ve heard Matchbook is increasing their commission to cover the additional costs, and if they’re doing it then I’m sure it’s not far away for Betfair to do the same. If like was mentioned earlier in this thread they are also taxed 15% on their 60% premium charges for winning accounts then this could deal a big blow that they need to recover costs from, and a commission increase could be looming.
For other exchanges, WBX.com was already UK licensed before the new laws so it won’t affect them or their customers.
Smarkets and Betdaq I’m not too sure about but will pass along info if I come across any news.
Here is a link that explains the MB increase: https://www.matchbook.com/page/faqs/consumptiontax/
Hope that’s useful for any exchange traders on here.
Re: new point of consumption tax in the uk
Hey was skimming through this thread just a correction to above, betting exchanges are not exempt from the changes. The new rules state that it will affect: The remote gambling industry who offer remote betting and gaming to UK consumers from outside the UK (https://www.gov.uk/gambling-tax-reform-new-rules-from-1-december-2014)yorkjoss wrote:No Whitesnake, this new tax is not aimed at uk exchanges only UK bookmakers, the new tax exempts uk exchanges....for nowwhitesnake wrote: yorkjoss, will this affect Betfair as well?
I’ve heard Matchbook is increasing their commission to cover the additional costs, and if they’re doing it then I’m sure it’s not far away for Betfair to do the same. If like was mentioned earlier in this thread they are also taxed 15% on their 60% premium charges for winning accounts then this could deal a big blow that they need to recover costs from, and a commission increase could be looming.
For other exchanges, WBX.com was already UK licensed before the new laws so it won’t affect them or their customers.
Smarkets and Betdaq I’m not too sure about but will pass along info if I come across any news.
Here is a link that explains the MB increase: https://www.matchbook.com/page/faqs/consumptiontax/
Hope that’s useful for any exchange traders on here.
- dwaynnyt
- Gaining experience
- Karma: -19
Post
Re: new point of consumption tax in the uk
Got it. I think the earlier the better would be in this case. It's just a matter of time though.Arbusers wrote: I believe that most of them will get a UK licence in the end.
- Chipmunk
- Gaining experience
- Karma: 9
Post
Re: new point of consumption tax in the uk
Kinda panicked when I first heard about this, but it really hasn't affected me at all.
Increase in matchbook tennis liquidity has helped a great deal though.
Increase in matchbook tennis liquidity has helped a great deal though.
- Skaggerak
- Pro
- Karma: 1
Post
Re: new point of consumption tax in the uk
The same type of tax has been implemented in Ireland as of tonight from what I gather,Marathonbet and 10bet both out and presume all the others who left the UK will follow suit.
- Thordin
- Totally Pro
- Karma: 30
Post
Re: new point of consumption tax in the uk
Im surprised just 10bet clones, marathonbet and just a couple other small bookies have reacted so far...