With the new state legislations, and Nevada, New Jersey and Delaware either already legalizing or going to legalize online gaming in the very near future with even talks of cross boarder legalization the future seems bright for the online gaming industry, but when taking a look at the UK’s new oncoming laws we can see that the odds are not so much in the industries favor.
New law proposals in the UK show a grimmer reality than over the pond. 2014 will signal the start of the harsh regulations that are going to be instilled on the UK gaming community. In December 2014 the point-of-consumption tax will be implemented, and will require any online gaming company that serves the UK to pay a 15% tax of their gross income, regardless to localization. In addition to the estimated £300 million the tax will rake in for the UK government, the law will also require any company interested in providing gaming services to the UK to apply for a UK Gambling Commission issued license.
The new laws also show the end of the commission’s “white list”, meaning any company licensed in the European Economic Area, Alderney, Antigua and Barbuda, Gibraltar, the Isle of Man and Tasmania will no longer be able to operate and advertise services from within the UK. With the operators in Gibraltar planning to be hit the hardest as they will lose their 1% or £425,000 cap out tax in favor of the new 15% tax.
Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>
The gaming companies are at an uproar on the new imminent laws, especially with more parts of the world easing up on the idea of online gaming. Some experts speculate that the new laws will only do the opposite than intended, and the gaming operators will most likely just pull out of the UK gaming market.
With the new legislations, and these oncoming restrictions, it seems that the US is the market operators should be betting on.
Photo courtesy of Wikipedia