Understanding the bonus tax

This is a guest contribution by Joonas Karhu, Chief Business Officer at Bojoko. If you would like to submit a contribution please contact Bill Beatty for submission details. Thank you. 

One year after it was introduced, the freeplay tax is still causing confusion for casino affiliate managers. Joonas Karhu, Chief Business Officer at Bojoko explains what it is, how it is applied, and how you can easily calculate your liabilities.

One of the most powerful acquisition and retention tools available to online casino operators and affiliates is bonuses. And despite their use coming under increasing regulatory scrutiny, and a move away from promotions that come with wagering requirements by some brands, there remains a large number of players that are incentivised by freeplays.

But on 1st August 2017, major changes to UK gambling law came into force that meant operators had to pay tax on free games, introductory offers and matched deposits. Since then, there has been a lot of uncertainty, confusion and misinformation among affiliate managers and casino representatives about the tax and how it is applied.