How Does Gambling Tax affect players in the UK?

by Karina Chen Last Updated
What is the POC (Point of Consumption) Tax in the UK?

What is a POC and it’s importance to gamblers? The ‘Point of Consumption Tax,’ was a levy imposed on online gambling establishments by the British Government back in 2014 as an amendment to the 2005 Gambling Act. The tax itself t has a starting rate of 15% and is aimed at those casinos that earn revenue in the UK but that are based in another location.

Before the 2014 was established it was widely recognized that the UK had quite a liberal attitude towards gambling businesses with numerous premier gambling brands being found in Europe like Paddy Power, and William Hill all of which hailed originally from the UK.

POC tax came to be because many of the best online casinos have headquarters in Gibraltar, Jersey and the Isle of Man. The reason for this is because until quite recently the law allowed those online businesses to pay their taxes to the nation that they were located in, and it didn’t matter where those online gambling services were being used. This of course, was preferable to those businesses as the low tax rates were very much desired, boosting revenue.

The Point of Consumption (POC) effectively taxes the casino and the gambling revue at the ‘point of consumption’- that means in the country where the games are being played, with the 15% tax being applied as the games are being played.

Those casinos which are located overseas will still have to pay those taxes that are required in their home nation, and this is why the Point of Consumption tax is so unpopular among a great many gambling businesses, and has, in fact, led to some sites reducing the prizes offered to players as well as some price hikes which has an adverse knock-on effect on the players.

Those that support the Point of Consumption tax believe that the British gambling market is now fairer and safer as the number of disreputable brands are limited and that the tax also ensures that off-shore operator adheres to the standards of security and legality that is demanded of them.

About the Author


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Karina has been a casino writer (and roulette addict) since 2014. After getting hopelessly hooked on Classic Roulette and The Hoff game (look it up…), she decided to devote her career to learning more about the dynamic world of online gambling. When she’s not reading about everyone’s reaction to the latest season of the Crown, she enjoys cooking, hiking, and nature photography.
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