When the UK Gambling Commission first passed new regulations earlier this year to enforce stricter licensing requirements and a Point of Consumption (POC) tax on the region’s customers, we all knew it would have a negative impact on the online poker community. Higher rates for operators would have to be made up somewhere, and the VIP programs were sure to take a hit. Such was the case on Tuesday when Full Tilt informed its UK-based members of a 20% reduction in rakeback.
| “Due to a new online gaming point of consumption tax, the rate at which players based in the UK accumulate Full Tilt Points will change. From Tuesday, December 16th, players will earn 8 Full Tilt Points per $1 raked for all ring games and tournaments.” |
The bulletin went on to encourage all members who formally resided in the UK, but had since moved, to ensure their account information is updated by contacting support@fulltilt.com. Only online poker players currently residing in the UK will be affected by the reduced rakeback program.
Prior to the alterations, Full Tilt players were receiving 10 poker points for every $1 contributed to the rake. UK members will now receive only 8 points for every $1 raked. Those points can be used to purchase tournament tickets or ring game tickets from the Full Tilt Store, or to enter special points-only tournaments.
Dependent upon a player’s current VIP status (there are 6 tiers in all), the original rakeback schedule – and the one that players outside the UK are still privy to – would deliver anywhere from 10% to 35% rakeback rewards. Under the new rakeback setup for UK players, those rates have been condensed to 8% to 28% rakeback.
As the missive alluded to, the UK Gambling Commission’s new 15% POC tax is burdened with responsibility for Full Tilt’s rakeback reduction. Enforcement of the POC tax became effective on December 1st, collecting 15% of gross profits coming from customers based in the United Kingdom; just one of the multitude of austere guidelines contained in the UK Gambling (Licensing and Advertising) Act.
The news of eroded rakeback shouldn’t come as too much of a surprise. As is the case in most business matters, when operating costs increase, that cost is generally passed on to the customer. However, Full Tilt did state in September that there would be no changes to the VIP program for UK players – at least not in 2014. What really has some players up in arms, though, is the way the online poker room altered its rewards for Black Card members.
| “We just want to let you know that from 00:00 ET on Tuesday, December 16th, the rate at which Black Card players can convert their Full Tilt Points to cash will change to $1 for every 250 Full Tilt Points.
“If you’re a Black Card player and want to avail of the $1 for every 200 Full Tilt Points rate, simply convert your points before Tuesday, December 16th.” |
Notice I’ve bolded the time and date here? Remember that this message was not delivered to UK members of the online poker community until the afternoon of Tuesday, December 16th, hours after the new conversion rates went into effect. According to Black Card members who posted on the TwoPlusTwo poker forums, this is the first they’ve heard of the new rules. They were given no prior knowledge or forewarning of the changes beforehand.