For me, it's important to be aware of the developments and plan accordingly.BeastofBrine wrote: ↑Sun Jan 31, 2021 8:50 amThe direction of travel for gambling regulation has been concerning me for some time, particularly because I plan to move to trading full time this year.
A number of people in this thread have already highlighted the pressures being brought to bear by anti-money-laundering legislation and the consumer protection lobby, but the way the UK regulates speculation/trading more generally is what has got me really worried.
The following article discusses the ban on trading crypto-currency derivatives, e.g. spreadbetting on the value of bitcoin, that came into effect this month: https://www.moneymarketing.co.uk/analys ... -advisers/
The key thing to note is that the FCA held a consultation, and 97% of the respondents opposed the ban. They then went ahead with it anyway.
This follows on from the previous ban on fixed odds bets on financial markets, also called binary betting (just in case you wonder why there is no longer a ‘financials’ section on Betfair). The justification given is also remarkably similar, couched in terms of difficultly of comprehension, financial risk to consumers, and the ‘lack of investment need’.
Technically, it is still possible to trade in these products if one is a ‘professional investor’. To give you a flavour of what that looks like in practice, it is someone who meets two of the following:
the client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters; or
the size of the client's financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000; or
the client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged”
The only way I can see this kind of infantising nonsense being kept at bay in the gambling world, is if the large bookmakers are able to apply enough pressure to politicians by talking about job losses and loss of tax revenue. And we better hope they do, because I am absolutely certain that whatever pencil-pushers and apparatchiks are assigned to ‘modernise’ betting will not give a damn about Betfair traders, and will be just as likely to ignore their own consultation as the FCA.
Currently, HMRC treat trading, and profits from trading/gambling, as non-taxable in the UK. If they go to the "US model" and tax it in some form, then, once this is proven to the trading platform, certain restrictions should be lifted, but kept in place for the more recreational punter.
If there are losses (as per a large % of businesses), then records are filed accordingly and no tax in that financial year. The govt/hmrc aren't gonna say to a bona fide, tax paying business, they can't invest larger amounts to make future profits. (Or, less than £12,500 personal tax allowance) Under those conditions, national insurance should also be paid too. (Registered as self employed too)
Finding something that you can work from home and make money, is in the fore front of lot of people's minds after during/after covid, as the landscape for travelling to an office/premises is likely to change in the next 3-5 years and onwards.
The FOBT's took quite a while to be restricted and the bookies made millions during that time. One of the problems is that the "success" of being able to restrict those, might go to their heads and restrict cart blanche, all things gambling.