Could the “point of consumption tax” (P.O.C) be coming to North America and Australia?

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In December 2014, the UK introduced a new taxation system for gambling companies called “Point of Consumption Tax.” It was introduced to stop gaming companies taking advantage of low or tax exempt countries to base their operations. The new taxation system works by making companies pay 15 percent on the gross profits revenue from consumers located in the United Kingdom. It is a big change from the old system where the tax was based on the company’s location and not their consumers.

Due to the success of the scheme, the Australian and American Governments are considering changing their gambling taxation laws to mirror the UK. At present, there is only discussion happening, but over the next year there is a strong possibility that the point of consumption tax could be heading to these two countries.

Many American and Australian free bets companies have argued that the point of consumption tax would mean many operators would not be able to continue trading. In the UK though it has not affected the growth of the industry.

All countries can regulate the gambling industry the way that is best for themselves. With the new taxation system working well in the UK, the pressure is going to increase worldwide for more countries to follow the UK lead.

It is a difficult time for online free bets sites. With constantly changing trends regarding regulatory and taxation across all the different states and countries, it is hard for them to keep up. It has led to many suggesting the-the golden era for the gaming industry is about to come to an end. It is taking a long time but finally the regulators are catching up with the gambling companies.

The point of consumption tax is not without its problems, though. Unlike high street operators, it is difficult identifying where the person gambling is from. The top free bets companies are calling for one taxation system worldwide to make it easier for them to manage their online activities. With one system in place, it gives the companies a certain outcome so they can make an intelligent and informed plan on the way forward.

In the US, online gaming is legal in three states currently. These are; Delaware, New Jersey, and Nevada. There are a large number of states though looking into the possibilities of making gambling legal within its jurisdiction. With states desperate to generate more tax revenues, it is an attractive proposition to legalize gambling. At present, there is a large percentage of US consumer utilizing online and sports books to gamble illegally. Due to the size of the problem, the government has decided not to pursue violators due to the cost and manpower needed to carry this out.

Over the next year, the gambling industry is going to change dramatically. Online sites such as free bets Australia and other US operators are going to be closely monitoring the situation.

 

Article courtesy of John Hawthorne who is as passionate about sports writing as he is passionate about writing about world news. As a sports journalist, John Hawthorne has all the elements needed to keep an informed and up to date review of the events going on in the online gambling world. Punters are particularly keen with his reviews on freebets.com.au.