As a bingo player you will notice over the next few days, if you haven’t already, that there are very few no deposit required bonuses being offered by both new bingo sites, and those that have been around a while.
There is a reason for this, and in this article we are going to try and explain why operators have made the decision to drop the free play bonuses .
The crux of it is that from 1st August any free play money given to you by a bingo site will cost them real money. The Government have decided to levy a tax of 15% against the gambling industry on free bets.
How The Free Play Tax Works
Let’s take the Cozy Games bonus as an example, even though these are all being removed shortly. If you were to register with Bingo Date and they had kept the £15 free play bonus, you would have received the free money at the point of registration.
When you played through the money the cost to the site for giving you that money would be £2.25.
With no guarantee that you are then going to make a deposit and play at the site, Cozy Games would pretty much be throwing money away. It’s been proven over the years that whilst the free money is a great incentive to get players to the site, it doesn’t always see players convert to real money play.
For a site to have to pay tax on free money given, it makes complete business sense that it has to have proven results to justify the expense and the fact that many sites are instantly dropping the bonus, would suggest this is not the case.
Add in that any play using winnings from the free play bonuses will be taxable once wagering requirements have been met, and sites are going to be losing money at an exponential rate if they opt to keep this type of bonus.