Poll results: Consolidation likely to follow PoC regime
Majority of respondents to eGR poll say businesses will struggle under new tax with an increase in black market also likely
A period of consolidation within the egaming industry is to follow the implementation of the UK’s Point of Consumption tax regime after it went live on Monday, respondents to this week’s eGaming Review poll have said.
After years of planning and several failed attempts to prevent it, this week UK-facing egaming operators began to pay a 15% levy to the Treasury and many predict it will have a number of lasting effects on businesses.
The majority of respondents to this week’s poll consider the most likely impact to be a period of consolidation, as 51% believe businesses will struggle with the increased costs of operating under the new tax.
This week eGR revealed that Intertain is set to acquire a key asset of UK headquartered gaming group Gamesys while CVC Capital Partners purchased an 80% stake in Sky Betting & Gaming in a deal worth £720m. Betfair chief executive Breon Corcoran said his company is remaining “flexible” with regards to potential strategic M&A moves.
Around 23% of respondents believe an increase in black market activity will be caused by poorly policed regulation with some parties unconvinced by the GB Gambling Commission’s ability to keep unlicensed operators out of the market.
Nineteen percent of readers believe marketing budgets are also at risk and that operators will look to slash advertising expenditure in an effort to protect their margins.
Just 7% said businesses will look to relocate their operations in the wake of the tax, and there has been little sign of a mass exodus from egaming jurisdictions such as Gibraltar and Malta to date.