Following our earlier article about the UK government introducing a secondary licensing scheme in the UK, Bodog have announced they are the first bookmaker to be approved under the new regulations.
Bodog UK has received the remote and non-remote gaming license from the UK Gambling Commission and will target customers in the UK via their Bodog.co.uk website. Patrik Selin, who is the Bodog UK Chief Executive Officer, said of the announcement:
“Holding a license granted by the world’s most robust and respected regulatory regime is a huge springboard from which Bodog UK can launch. The credibility and trust that the UK already enjoys in the online gaming industry is immeasurable. To be able to launch Bodog UK with these licences in place is a huge bonus for us and not only will it benefit our customers but will also allow us to attract the best talent in the industry to work with us.”
London is regarded as the capital of the iGaming world and Bodog will be able to operate freely and efficiently in the UK market as a result. The repercussions of the new UK secondary regulation are yet unknown as details have not been finalised yet.
Bodog announced at the end of June that they are to be the new shirt sponsors for West Bromwich Albion in a 2 year deal. Jamie Hinks wrote on CalvinAyre.com that online gambling companies that don’t have a UK license will “risk future factors such as lucrative football shirt sponsorship deals and advertising contracts”. He went on to say that more reputable gaming companies will “jump on the UK Gambling Commission’s bandwagon” to be able to service the UK market appropriately.
In the Guardian, a leisure analyst at Morgan Stanley named Vaughan Lewis said that the government “has to be careful” as they “can’t change the law just to raise taxes”. He went on to say that the new license proposal claims to offer “great customer protection” but will also “create an opportunity to levy duties on overseas operators”.
Michael Caselli, editor of magazine iGaming Business, warned that punters will be the ones to suffer as “a 10% tax rate is 10% less value for punters.” In the Telegraph, Evolution Securities analyst James Hollins stated that the new legislation implies taxation which is like to be a 10% gross profits tax rate. He said that this would “impact William Hill and Ladbrokes by about £25m to £30m per annum“.