Bingo Sites May Cut Back on Bonuses, Player Perks

For years players at bingo sites have enjoyed a variety of player perks and benefits. Free bingo games, hefty deposit bonuses, sizable jackpots and ongoing promotions have all been the rule in the industry. Now several industry experts say that in the near future online bingo players could see those same benefits either cut back or withdrawn altogether. During the last few years the number of bingo sites has tripled and there are now over 400 bingo sites targeting the UK market. Intense competition has benefitted players as bingo sites try to outdo each other by offering a staggering variety if lucrative bingo bonuses and offers.

One indication that the good times may be over is the fact that many bingo sites are tightening the terms and conditions associated with bonuses and many have increased wagering requirements for players to access bonus money. Many bingo sites have withdrawn free bingo offers in favor of cash back options and bonuses for established loyal players. While player acquisition remains important many bingo sites are focusing on player retention. Studies have shown that bingo has the highest player retention rate of any form of online gambling.

New gambling laws and licensing requirements are bound to have an effect on the internet bingo industry. Currently offshore operators have a distinct advantage over bingo sites licensed in the UK. Offshore sites are taxed at an average rate of 1% while UK sites are taxed 15%. New licensing and tax requirements may force smaller independent bingo sites to lower bonuses and jackpots to remain profitable. Since smaller operators have to compete with large well funded bingo operators many smaller bingo sites will most likely disappear. Cash strapped governments are looking for new revenue streams and the UK is no exception. It is only a matter of time before the new rules and tax requirements are implemented.

New taxes and licensing requirements will push the cost of doing business much higher. This year will probably bring many consolidation and mergers which will bring lower levels of competition. Online bingo has benefitted from a down economy that prompted many to seek low cost home based entertainment and online bingo fit that need perfectly. Now that the economy is recovering many players may cut back on internet bingo games in favor of other activities. This will put even more pressure on bingo operators. For now many in the industry are wondering what the rest of the year will bring?

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