—TechRound does not recommend or endorse any betting, gambling, financial or investment advice or practices. All articles are purely informational—
Online betting companies in the UK recently dodged a proposed £3bn tax hike that was considered by treasury to shore up public funds after two influential think tanks put forward proposals to double taxes on higher risk segments betting segments and sport betting.
Their recommendations come about not only as result of trying to raise states funds but as a measure to curb the said dangers of bookmakers marketing high risk gambling games to consumers.
For now, leading betting sites appear to be able to breathe a sigh of relieve as the proposed hike was not included in the Autumn Budget.
Marketing’s Critical Role in Betting
Marketing has seen a rise in online betting and somewhat of a normalisation of an industry that otherwise before the digital revolution relied on handwritten tickets and backroom bookies.
Betting companies employ innovative marketing strategies to lure customers to their sites and it does not take that much to reach them. Social media, targeted ads and personalised marketing are one of the tools used.
The Post-Tax Decision Landscape
Despite the decision not to raise the taxes, the industry still remains on tenterhooks. Industry heavyweights have warned that such increases would harm the profitability of their businesses and lead to job losses in retail betting as well as the sports sector.
Following the proposed increases, the markets reacted negatively as share prices of several gambling companies dipped. But true to their nature, the markets responded positively after the hike was not implemented and the said gambling companies rebounded after October 30 and continue bringing forth the latest betting offers.
Impact on Consumers and Industry Trends
For now, the implied impact is subdued because the proposed hike was not implemented, but gambling companies certainly have their ears on the ground for any future developments and we believe they will continue as they were in regard to marketing their products to consumers.
The impact on consumers like industry trends is not felt now. Those who follow parliamentary processes and current affairs were probably alert but there is no tangible impact as we speak.
What we foresee happening in the event treasury increases taxes on remote betting companies, is customers turning to the black market as a result of not getting offered products that are not ideal for them in terms of odds and pricing generally.
Looking Into the Future of Online Betting in The UK
Once such considerations have been made by legislators, it’s more likely than not that proposals of this nature will be put on the table again. The gambling industry, particularly online betting is very profitable, and to cover the budgetary shortfall and to make sure it beats inflation, taxes generated from this industry will come handy.
—TechRound does not recommend or endorse any betting, gambling, financial or investment advice or practices. All articles are purely informational—
