In order to calculate the taxes, you just have to calculate the actual bets made by the entire bonus promotion and from this value you have to deduct the winnings of the players through free spins. Of the resulting amount, online casinos must pay 15% tax. Overall, nothing unusual, but the taxation of bonuses (ie the game money) has been new.
Suppose a player pays 50 pounds and gets a deposit as a bonus. He puts the 50 pounds into play and ends up with 30 pounds. Then he uses the free spins, maybe getting 10 spins on 1 pound bet. There he can secure the player maybe 30 pounds, which then have to be implemented. In the end, he may still have a profit from the free spins of £ 15, which he can really pay off. Then the following calculation would result:
Paid and used money: 50 pounds
Bonus: 10 pounds through Free Spins bets
Payout after playing: 30 pounds
Profit through free spins: 15 pounds
Gross gaming revenue (stakes minus disbursable winnings): 15 pounds
Of this gross gaming income amount, a casino would have to pay 15% tax, which would mean £ 2.25. If the player left the online casino for a profit, the casino would not have to pay any taxes on it.
Tax increases are planned
In the UK, there is bad news for the Internet gambling sector. The government has now officially announced that from October 1, 2019, gambling providers will be charged a tax of 21% of gross gamblers’ days. The revenue from the gambling tax for 2018 had not met the expectations of the government, so the levy has now been adjusted.
It could have a relatively large impact on the UK market sector. New providers could be deterred, small businesses are additionally burdened, so they may have to fight for survival. It is currently believed that tax providers specializing in live casinos or video poker are the hardest hit.