Talk of the UK Gambling Commission’s new licensing and taxation regulation surrounding the online poker industry has been circulating for months now. As a result, PokerStars has obtained the required licensure and launched its new UK online poker site today, PokerStars.co.uk. Members of the poker room logging in from the region will have to download the new software, but otherwise, little change is expected for now.
The new PokerStars UK website looks much the same as the worldwide version players have become accustomed to, aside from the “co.uk” rebranding. Anyone in the UK who attempts to visit the original .com site will be automatically redirected to the PokerStars.co.uk version and immediately prompted to download the new region-specific software. Once installed, the transition should be seamless. All monetary accounts, VIP statuses, player points and other features will instantly carry over into the new software.
The change in domain suffix came about due to the UKGC’s newly imposed regulations. As of November 1, 2014, all online poker sites that wish to accept UK players must be licensed by the commission, and must pay a 15% point of consumption (POC) tax on all revenue generated from UK customers. PokerStars was one of the first operators to announce its intention to apply for the UK license, and is subsequently the first to launch a UK-specific website.
When the world’s largest online poker room first acquiesced to UK licensure, PokerStars warned its members from that region to expect some changes in the poker client’s features. According to the verbiage of UK regulations, it was thought that certain functions, like auto-rebuys in tournaments and auto-top-offs in cash games, would no longer be permitted by law. However, the UKGC quickly dispelled that rumor by stating such features are legal under the Gambling Act.
Prior to the clarification, UK online poker players were up in arms over the issue. A representative of the poker site, known as ‘PokerStars Steve’ on the popular TwoPlusTwo forums, quelled the situation in early October. “Auto-rebuy will be available in the PokerStars UK client, per the updated/modified guidance provided by the regulator.”
While the features of the poker client will remain unchanged, PokerStars was forced to refurbish its VIP loyalty rewards and increase the rake at most cash game tables in order to help offset the new 15% POC tax imposed by the UK. Some online poker players are still upset about those alterations, which currently include a 5% reduction in the yearly revenue generation of Supernova Elite members, with more as-yet unannounced changes expected in 2015. However, one member of TwoPlusTwo put the situation into brilliant perspective.
I response to those who berated PokerStars for ‘daring’ to reduce the VIP program, ‘TeamTrousers’ stated, “Yeah, how dare a business try to continue making a profit in light of their significantly increased tax burden?” In reference to another post blaming the greed of politicians, he questioned, “So, what was your MP’s response when you wrote to him about this? When the consultation process was open, how hard did you press your own views?”
The fact is, even as the supreme leader in the global online poker industry, PokerStars was forced to make changes. The reason PokerStars is all alone at the top of the online poker industry’s totem pole is the same reason that most players will continue to play there; better software, better game variety, bigger tournaments and superior promotions. Case closed.