Online poker in the UK is facing significant changes as Mansion Poker and PokerStars.fr announce their withdrawal from the market. These exits are largely attributed to the impending UK Gambling (Licensing and Advertising) Bill, which introduces a 15 percent point of consumption tax, creating a double taxation burden for operators already taxed in their home countries.
UK Online Poker Market Shrinks as New Tax Looms
Mansion Poker was among the first to announce its departure, effective September 15, 2014. The company cited changing regulations as the primary reason for its decision. Players were advised to withdraw their funds immediately and were directed to Titanbet Poker as an alternative, with incentives such as matched VIP levels and a first deposit bonus.
Shortly after, PokerStars.fr confirmed its exit from the UK market, effective October 1, 2014. This move was also driven by the new UK gambling bill, which would subject French-licensed operators to double taxation. UK-based players on PokerStars.fr were instructed to cash out their balances.
Fast facts
- Mansion Poker’s Exit: Mansion Poker ceased operations in the UK on September 15, 2014, recommending players migrate to Titanbet Poker.
- PokerStars.fr’s Withdrawal: PokerStars.fr followed suit, exiting the UK market on October 1, 2014, due to the new tax regulations.
- Impact of UK Gambling Bill: The UK Gambling (Licensing and Advertising) Bill, with its 15 percent point of consumption tax, is the main catalyst for these withdrawals.
- Player Fund Migration: PokerStars.fr players with existing PokerStars.co.uk accounts will have their play money, real money tickets, tournament money, VIP Status, and FPPs migrated. Pending bonuses will be re-credited or paid pro rata.
- PokerStars.com Migration: UK players on PokerStars.com accounts will be required to migrate to PokerStars.co.uk, a process designed to be quick and straightforward.
- Future Outlook: It is anticipated that other dot-fr poker sites, such as Winamax.fr and TurboPoker.fr, may also withdraw from the UK market due to the economic unviability of double taxation and insufficient liquidity for standalone UK clients.
Implications for Players and the Industry
For players, these changes necessitate prompt action to withdraw funds and potentially migrate to new platforms. While PokerStars.co.uk will continue to share player pools with PokerStars.com, ensuring a consistent gaming experience, certain features like auto-rebuy will be unavailable due to UK regulations.
The broader industry faces a challenging landscape. The Gibraltar Betting and Gaming Association (GBGA) has launched a legal challenge against the new Act, but the recent exits suggest that many operators, particularly those with less liquidity in the UK, may find the new tax regime too restrictive to continue operations.
Sources
- PokerStars.fr Pulls Out of United Kingdom, PokerNews.
- Mansion Poker Announces Exit from the United Kingdom, PokerNews.