Uncovering The Truth Behind No Deposit Bingo Bonuses
Typically, you’d think that no deposit bingo bonuses allow the user to enjoy the best of both worlds –– gaining bonus cash for free, in order to test-drive the site! Up till recently, no deposit bingo bonuses were prevalent everywhere on bingo sites, as a way to attract customers. How could such an offer decline in popularity, you may ask? This is because more often than not, it is not what it appears to be. Though customers were able to receive an amount for free to test-drive the site, it is often not a win-win situation. Free bonuses often carry heavy wagering requirements, which serve to help the operator earn profit and to deter too many customers from signing up and cashing out the bonus.
You’ve won that new bonus? Great! But first, you can’t cash out unless you have made at least one deposit, and met the terms of your original bonus. Here’s a handpicked selection of top offers you can get from Bingo sites.
Tax Rules and Taxation
In March 2016, UK Chancellor George Osborne unveiled a new gambling tax rule: that all licensed online gambling operators, such as online bingo and casino operators, are required to place a tax on any free bet offers. This meant that the site would be liable to pay tax for giving out any bingo bonuses, even though it is only made up of theoretical money. These proposals were implemented in early August 2017, which saw online gambling operators hit with a 15% general betting duty on all free bets.
To explain in layman’s terms: initially, an operator need not pay tax if the player failed to win anything from the free bonuses. However, the new levy meant that the operator now needs to pay tax on the bonus, regardless if the player wins or loses. This had a disadvantageous effect on the no deposit bingo bonuses, as only five percent of players who accept bingo offers would make a deposit –– thus leaving bingo operators shelling out on tax without return. Plus, this additional tax implementation on top of their already tax-laden selves made it difficult for operators to sustain their operations.
Tax Evasion
In order to assuage disgruntled customers, many operators have looked for alternative ways to reward their players. Though the landscape of no deposit play has changed, operators believe that there are different ways to still obtain rewards for themselves.
For example, some operators have gravitated towards free bingo games, which pay out winnings in the form of small bingo bonuses of £1 or £2. As the winnings are small, the tax applied would not be as heavy as compared to free bingo bonuses. Additionally, having free bingo games on tap could attract even more new players, which operators hope may lead to increased deposits to claim free bingo tickets.
Another way that gambling operators are looking towards is to reward their players by giving them opportunities to win potential bonuses –– providing them with a set period of time to play for free, or free spins, for example. In this way, operators are able to minimize the risk of paying a hefty tax as the players are not guaranteed to win bonuses, even with free spins or extra playing time. This is important because even though operators are not giving away something of taxable value, they are still liable to fork out a tax on the bonus funds that could potentially be won.
What’s Next?
With the increase in the Point of Consumption Tax from 15% to 21%, online gambling operators have already significantly reduced the size of online bonus offerings. In May 2019, the UK Gambling Commission has again implemented three changes, which have affected both newbie players and no deposit bingo offers alike. They are as follows: to prohibit players under the age of 18 from gambling, to stop self-excluded players from gambling, and to ensure that players are able to request withdrawals at will.
Gone are the days of the three-day grace periods after registration, where players are free to gamble whilst waiting for their verification checks. Now, robust and thorough checks will be conducted to ensure the legality of the players –– whether they’re above 18 and if they are not self-excluded. This is to eradicate any stalling blocks put in place when the player is cashing out their winnings.
Previously, players who requested withdrawals had to clear various verification checks which may extend the process to take days (or even weeks) to complete. Now, the verification checks will now be completed prior to the withdrawal stage –– making the withdrawal process much quicker and easier than before. However, if the verifications are not completed by 7th May, players will not be able to deposit or play any real money games or free to play (demo) versions. This announcement is plastered all over online bingo sites and their subsequent social media platforms.
The Future of Free Bingo Bonuses
With the closure of legendary brands such as Cozy Games, Dragonfish Software, and Virtue Fusion, little remains of the once-thriving no deposit bingo bonus world. However, fret not! No deposit bingo bonuses still remains a great first foray for gambling beginners to step into the industry and is a golden opportunity for them to learn the ropes without forking a high price in return. If you’d still want to try out free bingo (and games) before making a deposit, you can still access over 20 no deposit bingo offers, including sites such as mFortune Bingo, 32Red Bingo, Costa Bingo, and many more.
As the UK government continues to seek more transparency for players, sites such as no deposit bingo bonuses are discouraged as there are often many other strings attached for players, other than the free bonus. This crackdown may prompt yet another shake-up of the gambling industry, which will in turn impact the bonuses and rewards for both player and operator. As such, it is important to keep your eyes peeled for any news about legislation that could affect the way gambling runs.
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