POC 15% tax rate

icebreaker

icebreaker

At the Start
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Jun 12, 2005
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The consequences of the new "Point Of Consumption" tax outlined in the 2014 Finance Bill are becoming plain to see.
I note that today the largest Asian bookmaker -- SBOBet -- announced that they are closing their business to UK resident clients, citing the new POC 15% tax on profits from general bets as the reason. So too are 12Bet withdrawing from the UK market as of Sept 30th. Will Pinnacle be next?
This proposed new tax on general profits will make for an unsustainable business model for offshore remote bookmaking operations who already run a low-margin, low over-round competitive book. More will undoubtedly follow SBO's and 12's footsteps and simply pull out. The POC is a negative development for punters, and will surely have the negative repercussion of lessening competition.
 
"It is with regret that we wish to advise you that we are no longer able to continue to offer you the betting services with SBOBET.
This unfortunate circumstance has been brought about by the changes to the legislation in your country of residence with regard to online gambling. Unfortunately, it will now be necessary to close your SBOBET Account with effect from 15 September 2014.
However, all outstanding bets you have already placed for events scheduled after 15 September 2014 will not be affected and will be settled once they have been determined. In this event, your Account will remain available for login after 15 September 2014, solely for the purposes of withdrawal of funds but no further betting can be carried out.
If you have any funds remaining in your SBOBET Account, the Account will remain accessible to you for the purposes of withdrawing funds. Kindly sign in, check your balance and make your withdrawal request immediately.
For Accounts with no outstanding bets, if we do not receive a withdrawal request by 30 September 2014, it will be necessary for us to close your SBOBET Account and arrange for the remaining funds to be returned to you via your current nominated payment option.
We wish to take this opportunity to thank you for your fantastic support in the past and would be more than pleased to be of service to you again in the event that there is a change in the regulatory landscape of your country of residence.
In the meantime, if you have any questions, please contact us at support@sbobet.com. Alternatively, you can contact SBOBET Support Team by phone at Europe: +44 1624 721960 and by fax at Europe: +44 1624 721966.
Yours sincerely
SBOBET Support Team"
 
Aye, this morning Pinnacle announces its withdrawal from the UK market due to the incoming 15% tax.
A pity, Pinnacle are a really good book. :(

"Due to changes to British gambling licensing regulations, Pinnacle Sports will after September 30th, 2014, be unable to offer our services to residents of Great Britain.
Any bets placed up to and including September 30th, 2014 will be honoured"


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Pinnacle are the nutz for soccer betting or U.S. specific sports. Tight margins and very low over rounds and very high limits.
There doesn't seem any deadline for withdrawals, but to be on the safe side I would pull out any funds by Sept 30.
 
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