It’s well known now that in December a Point of Consumption tax will be levied on online bingo, forcing those bingo sites that are licensed overseas to pay tax for UK players, and with some huge changes afoot around the industry, it seems there’s already some belt-tightening going on.
There’s no doubt the industry will be hit hard with experts predicting that we could lose up to half of the bingo market as the POC tax takes hold. That said, there are a lot of bingo sites out there resting on their laurels and so that may not necessarily be a bad thing.
Last week we saw the introduction of new reload bonuses at all Dragonfish network sites, taking reloads to a level where unless you’re a big player, are hardly worth having at all. Is this the Point of Consumption tax already taking hold on the industry with sites doing what they can to survive?
As of May 1st 2014, Dragonfish players definitely aren’t getting as much for their money, with deposit bonuses now structured around loyalty levels. This in itself isn’t too bad, but when you consider that bronze players now only receive a 10% bonus on deposits, that’s just £1 of bonus funds for a £10 deposit, it really isn’t much at all. Players with a Gold and Platinum loyalty level can receive a bonus of between 70% and 80% and in our opinion this will add to the edge these big spenders already have. If Dragonfish only want very high rollers to play at their sites, they’re certainly going the correct way to drive away the community players.
Dragonfish aren’t the only recent bingo network to change their reload bonuses either, a change to the 15 Network recently also saw reload bonuses attached to loyalty levels, but this network is at least offering a minimum reload of 25%.
Many other brands, such as Virtue Fusion sites don’t offer reloads at all, but they tend to be bigger named brands, who are already more likely to survive the new tax.
While the changes may be a shock to players, it’s been suspected for a while and is likely to continue across the entire industry as sites bring bonuses to a more realistic level going forward into the new tax era.