888 plc have collapsed its online app, Magic888 Casino, in anticipation of the Point of Consumption Tax.
The gaming app Magic888 Casino has announced that it is folding, becoming the latest social gaming app to do so.
It is believed that the impending impact of the Point of Consumption Tax (PoC Tax), combined with marginal business returns have contributed to 888’s decision this week to cull its Magic888 Casino app from Facebook, just five months after it was first launched.
However, despite the culling of this product, 888 have confirmed, nevertheless, that it is to continue offering its popular Bingo Appy real-money game, which has been doing well since it was first launched eighteen months ago.
The decision made by 888 follows similar conclusions that have been made by Gamesys earlier this year, who decided to remove its Bingo and Slots Friendzy app from the real-money social gaming environment. Furthermore, Big Fish Gaming abandoned a real-money partnership with Betable.
888 Holdings plc operates several notable gambling websites, including 888 Poker, 888 Ladies, 888 Bingo, 888 Sport, 888 Game. It has an operating subsidiary, Cassava Enterprises, which is incorporated and operates under the laws of Gibraltar.
The Point of Consumption Tax, which is otherwise known as the 15p Tax, comes in on December 1st 2014. As it stands today, gambling firms are taxed on the basis of the ‘Point of Supply’. To put it simply: they are taxed by the country where they are based and on their profits. But as of December 1st, gambling firms will pay tax to the British government on the basis of where the bets and wagers are placed by their customers. This means, in essence, that all bets placed online in Britain will also be subject to a 15p “Point of Consumption Tax”. They will, in other words, be obliged to pay 15% of their revenue. Because of this, it is likely that other gambling websites may well go the way of Magic 888 Casino and be forced out of business.
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