The UK Financial Times reports that UK sports betting operators are in a battle to secure customers ahead of the upcoming 2015 igaming taxation.
The top six UK Sports betting operators – Paddy Power, Bet365, Betfair, Coral, William Hill and Ladbrokes will break all previous records on industry TV adspend in order to gain new customers in 2014, prior to new UK igaming legislation and taxation.
Key TV ad-spots for the upcoming FIFA World Cup have been sold to the above mentioned operators at a premium, as UK broadcaster aim to maximise 2014 revenues.
The news source reports that in 2013 TV-adspend on sports betting by the top operators amounted to an estimated figure of £150 million, at the current rate of ad spending on the format it appears that operators will smash their record.
New tax laws implemented for igaming operators are designed to close the loophole of ‘place of supply’ tax, operators targeting the UK market will have to operate under the new ‘point of consumption tax’. UK operators expect Chancellor, George Osborne to layout further details regarding the 15% gross profit gambling tax on Wednesday’s Budget announcement.
David Jennings, of Davy Research, said: “At a time when the gaming operators seem to be increasingly reliant on TV advertising to drive growth, the question we are asking now is whether this review of TV advertising could mark a further challenge for an industry already facing significant regulatory and tax headwinds.”