LeoVegas prepares for “tough” free play tax introduction
Operator’s UK & Ireland country manager tells EGR Intel upcoming tax changes will make “life extremely tough” and will increase competition
Shenaly Amin, LeoVegas
LeoVegas has admitted it is expecting a “tough” time when the tax on free plays is introduced in the UK later this year and said competition between firms will only increase.
Last year, the government announced plans to abolish the tax-free status of free plays for online casino and bingo revenues although following consultation, only the first use of free plays will be subject to PoC tax when the amendment is implemented in August 2017.
Speaking to EGR Intel, LeoVegas UK & Ireland country manager Shenaly Amin admitted the new legislation will be tough on the Stockholm-listed operator and the firm is having to adapt its bonus strategy within its CRM campaigns.
“It’s going to impact all the online operators in the industry, particularly as there is such a strong bonus culture in the UK,” said Amin.
“It’s something you cannot get rid of unfortunately so it’s going to make life extremely tough for us and increase the competition.
“We are always trying to test new channels and keep ahead of these changes as we know at some point these changes are going to come to fruition but there’s no set channel that we can say we’re going to experience growth from or acquire new customers when these changes come in.”
Amin added there is a “strong chance” stake restrictions could also apply to online gaming, with MPs already pushing for the maximum stake on fixed-odds betting terminals (FOBTs) to be cut to £2 per spin.
However, Amin downplayed the impact this would have for the online sector, with bet limits already partly in place.
“The difference with online however is that there are measures in place already to protect the customer because they can already place a bet limit in their account.
“I’m pretty sure the government is going to try it, but it’s going to be a lot easier for us to manage as we’re already managing that partly.”
Gap in the market
LeoVegas ramped up its UK sportsbook marketing strategy recently by partnering with rugby union side Leicester Tigers.
With betting firms sponsoring half of all Premier League clubs this season, the operator said it moved into rugby instead to take advantage of an untapped market.
“When you look at the size of the market and how fierce it is, everybody is going after the big partnerships in the Premier League, and it’s something a young brand such as ourselves can’t compete with at this moment in time.
“We knew that no other operator was really making an impact in the rugby market, and identified that we could be a top three player. There’s no one really owning that space.”