Are we witnessing a new phenomenon in the online bingo world? Could we be coming to an end with no deposit bingo bonuses? It’s true to say that the number of no deposit bingo offers have declined massively in the past few years and we think we know why; times are certainly changing
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Not so long ago, just about every bingo site would offer some sort of freebie to attract new customers but what was it about this type of offer that has made it become almost extinct? Tax rules; it’s as simple as that, but before we go into that, it’s time to look at what exactly attracted players to these types of offers.
The Truth About Free Bingo Bonuses
The Truth About Free Bingo BonusesA free bonus is what it is; you receive an amount for free to test-drive the site, and whilst you may be thinking it’s a win-win situation, it’s not. Free bonuses usually carry hefty wagering requirements, this is there purely to stop people signing up and cashing out the bonus. The operator has to get something out of it at the end of the day, so sticking wagering terms on the bonuses is what they do. If you go on to win with your bonus – great, but you will find that you won’t be able to cash out until you’ve made at least one deposit and until the terms of your original bonus have been met
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Taxation Changes
In March of 2016, the then UK Chancellor, George Osborne announced that online operators which were licensed (and regulated) to offer gambling services within the UK, would be required to pay a tax on any free bet offers – this would hit online bingo and casino operators alike.
The budget proposals came into effect in August 2017, which was around the time free bingo bonuses were obliterated from view. Operators would be hit with a 15% general betting duty on all free (or discounted) bets, a tax which was introduced back in 2014, but online bingo and casino operators were previously exempt from the charge.
But what does all that really mean? But what does all that really mean?In simple terms; prior to the new legislation, an operator would only have to pay tax if a player failed to win anything from the free bonus, what with wagering with bonus not being included in the ‘Point of Consumption Tax’, but the new rules now mean that the operator would pay a tax on the bonus, whether the player wins or loses
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The new levy had an adverse effect on the no deposit bingo bonuses because it was estimated that only 5% of players who accept this type of offer, would then go on to make a deposit, which resulted in the operator shelling out on tax without a return. Now, the no deposit offers tend to be for those who enjoy spinning the reels and come in the form of slot spin offers.
Found a Way Around the Tax
With all this in mind, many operators turned their attention to free bingo games, which tend to almost always pay out winnings in the form of bingo bonuses. This way of doing this is cheaper because the tax would be applied to the winnings and the amounts that can be won is always small; £1 or £2 bonuses. Also, having free bingo games on tap is a smart way of attracting new players, who the operator hopes will then go on to make a deposit to claim even more free bingo tickets.
