10Mar
betfair-t-shirt

Over-taxation of Online Gambling is as bad as Overtraining at the Gym

Is Betfair going to return to Greece any time soon? That is the most common question I receive in my inbox. Obviously, my crystal ball cannot answer that.

Are they really looking forward to returning to any country that drove them off due to regulations? I doubt it, although they did acquire a gaming license to Bulgaria. So maybe there is hope after all, but only if countries ease off the taxation.

That is understandable.

With a 15% tax on revenue, Bulgaria sent most gaming operators out of the country. Since they revised their legislation and introduced 20% tax on profits (i.e. gross gaming revenue – GGR), top brands like Pokerstars made a comeback. It doesn’t take a genius to figure out that over-taxation makes business plans useless.

Yet, that is how things work it seems.

European countries noticed a couple of years ago that online gambling revenue has been on a steady uptrend the last decade. They also noticed though that most online bookmakers were operating overseas, meaning gaming operators paid taxes elsewhere.

“That can’t be right,” the financial advisors thought.

They began regulating the online gaming market, which practically meant issuing licenses at a cost. No license, no game. Gaming operators had to acquire a license to continue offering their services to residents around Europe. Acquiring a license though meant additional cost. And in gambling’s case, the cost came down to heavy tax.

“Oh, these companies has saved a lot all this time, let’s over-tax them!

Ehm, fail. Most bookmakers decided they were not interested after all. And how can you blame them, when over-taxation brought profit margins to their knees? If you sell a product for $100 and your net profit is $25 long-term, how can you accept paying 30% tax on revenue (GGR)? Your business will run out of money mathematically.

Bulgaria proposed 20% tax on GGR and got gambling companies back. They will in turn contribute to the nation’s GDP and everyone will be happy. Bookmakers will increase their revenue by accepting Bulgarian gamblers, Bulgarian administration’s cashier will benefit from the additional income and Bulgarian citizens will be able to bet or play poker at their favorite company, joining millions of other people abroad.

A win-win-win scenario.

Greece on the other hand believes that a 30% tax on GGR still allows a viable business plan. Yet, big gaming companies are no longer accepting players residing in Greece for 15 months now. They must be nuts to leave a market worth €250 million, huh? One of them is Betfair; but that is also part of the “no betting exchanges allowed” part of the Greek legislation. Go figure.

As if that wasn’t enough, Greek law also prohibits any “commercial communication” with unlicensed operators. In plain English that means Greek webmasters cannot advertise or promote blacklisted bookmakers. Again, it makes no sense after all to advertise a company that doesn’t allow customers from your country. You will get no new registrations and the company itself will not be interested.

So, why bother?

Greek news media and sports websites that relied on these advertising deals have now limited options. They can only promote a handful of licensed companies. These companies on the other hand do not have to compete with well-budgeted big companies for the available advertising spots. Less competition, less advertising cost, less revenue for the media. With less money coming in, news and sports sites need to cut money going out, which leads to jobs cutting.

What does over-taxation of gaming companies accomplish?

  • No interest for a license, companies leaving the country. People cannot bet at world-class companies.
  • Less revenue, less tax and ultimately less money for the government. Was that the purpose of the whole regulation thing?
  • Fewer jobs, increased unemployment. Congrats!

A lose-lose-lose scenario.

Lawmakers have also included fines for anyone disobeying the law. Is it a crime to wear Betfair-branded t-shirts at the local gym, if you are not involved in a commercial deal? I am sure it is not. Look elsewhere for the crime conducted.

Just like overtraining at the gym is bad for your muscles, over-taxation is bad for everyone’s business.

4Mar
predict-trends-betfair-chart

Trying out a Forecasting Tool that Predicts Betfair Trends

Wouldn’t it be great if you could predict Betfair trends without spending hours on research? You just back the odds that are destined to shorten or lay the odds that are predicted to drift. Lean back to your chair and enjoy your coffee, while the market confirms your prediction. Then, you close your trade and move on to the next market of the betting exchange. Easy, huh?

That is exactly what a forecasting tool promises to do. Its developers contacted me last night, offering me the chance to try out their tool for a whole week. Would you pass this offer, which I estimate at £500-2,500 (steep price to pay, I know)?

I certainly did not and as I wait for directions, I spent some time on their website. I am afraid I will not disclose where you can check out the forecasting tool, before I make sure it is worth of your time. I do not want to be the reason you paid for a questionable product. That is why I never disclosed the tipping service I tested against market’s efficiency by the way. Because it sucked, like many others out there. Read More »

10Feb
casino-slot-machine-closeup

Casino Bonuses Are Boon to new Casino Players

Online casinos are the preferred medium to play casino games these days rather than the traditional land based casinos. People prefer to play in the online casinos today as these offer the players with casino bonuses, deals and jackpots which the land based casinos almost never do. Therefore, the casino lovers prefer these bonuses and play casino games online.

Casino bonuses are indeed a boon to the new casino players as players get free money as soon as they join the casino. On internet, you can get information about the casino bonuses offered in several top-notch online casinos of the world and you can choose any one of these to play your favorite casino games and try out your luck in these games. The fresh players are offered with free credits to have an experience about online casino gaming. These free credits are given under the name of welcome bonus on introductory bonus. The welcome bonus of different online casinos varies, so you’d better check before registering with any online casino. Read More »

26Jan
bingo-numbers

The Most Popular Online Bingo Tournaments

Online bingo is a popular form of online gambling that is right behind online card games such as poker. Some tournaments are free and are just for fun while others have an entry fee and pay out actual money. In an online setting, players are able to maintain their anonymity and can generally find a tournament any time of the day or night. The growing popularity of online gambling also gives players from around the world the opportunity to participate in the same tournament without having to travel to an outside location. Read More »

26Jan
wokring-from-home-office

Working from Home Tips that Increase Productivity and Save Time

Working from home can be rewarding but at the same time, it can become a burden. By having a plan and sticking to simple rules, you not only become more productive but also have more free time to enjoy life. Freedom and making myself a boss is some of the reasons I work from home. By following these working from home tips, I managed to improve the workflow and make the most out of my time. Read More »

24Jan
red-dead-redemption

Console games that best capture the world of betting

As console gaming moves into an era of next generation graphics, the gap between possibility and reality in the world of technology continues to decrease. The Xbox One and PlayStation 4 epitomise the considerable advancements in capabilities that allow gamers to enjoy optimum processing speeds, frame rates and visual resolutions which bring them closer to the action. A plethora of gaming genres, such as sports and shooters, have transformed from concept to console titles which push the boundaries of technology to new levels. They are effectively accompanied by additional perks and features, such as motion sensors, movie applications and voice recognition systems that allow gamers to communicate with their console, which shape the future of console gaming. Read More »

24Jan
casino-games-best-odds-casino-uk

What Are the Best Bets Available at a Casino? [Infographic]

This infographic, brought to you by Casino UK, shows the games where casino lovers will find the best bets. The casino is not afraid to reveal the casino games with better odds and low house edge.

Today, the casino players are more smart and wise and therefore, they look to play in those casino games that offer best bets and the lowest house edges. Some people might not even know the meaning of these terms; hence, the infographic is here to inform you and tell you about the best bets which you can grab in the casinos. Read More »

22Jan

Crazy Pineapple Poker

Crazy Pineapple Poker is similar to texas holdem poker  in many ways.  Before you play, you should have an understanding of how to play texas hold’em poker.

The similarities start with the blinds.  Just as with texas holdem, the two players to the left of the dealer post their blinds.  However, instead of each player being dealt two hole cards, they are given three.  Then there is a round of betting.

After the betting, the flop is dealt, and then a second round of betting is done. Read More »

10Jan
bettingexpert-profile-tipster

Why I joined BettingExpert, the Social Network of Sports Betting

BettingExpert welcomes all visitors by introducing itself as the social network of sports betting. Moreover, they offer monthly prizes worth £3,000 to the best 40 tipsters. Yet, that’s not the reason I joined BettingExpert today.

The past months I have become a lot more active at social media and generally on the internet. I am discovering my creative side of myself, as I realize that writing about gambling is a lot more fun than gambling itself! That doesn’t mean though I have stopped risking my hard-earned money online. It’s that my main concern nowadays is to tell interesting stories, share any knowledge I have acquired and, most importantly, discuss with like-minded people. Read More »

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