Point of Consumption vs Point of Consumption Tax
What each means, how they relate, and when to use which.Point of consumption is the regulatory principle that gambling is governed where the customer is located, not where the operator is based. Point of consumption tax is the tax levied under that principle, so an operator pays tax on customers in a market regardless of its own base. One is the rule; the other is the levy it enables.
The regulatory principle that an operator must be licensed by — and pay tax to — the jurisdiction where the customer is located, regardless of where the operator itself is based.
Use it when Use point of consumption for the where-the-customer-is regulatory principle.
Full definition of Point of Consumption →A tax levied on gambling based on where the customer is located rather than where the operator is based.
Use it when Use point of consumption tax for the levy charged under it.
Full definition of Point of Consumption Tax →The key distinction
- Point of consumption is the regulatory basis; the tax is what it charges.
- The principle decides jurisdiction; the tax decides how much is owed.
- A market can adopt the principle for licensing and then apply the tax on top.
Common questions
What's the difference between Point of Consumption and Point of Consumption Tax?
Point of consumption is the regulatory principle that gambling is governed where the customer is located, not where the operator is based. Point of consumption tax is the tax levied under that principle, so an operator pays tax on customers in a market regardless of its own base. One is the rule; the other is the levy it enables.
What is Point of Consumption?
The regulatory principle that an operator must be licensed by — and pay tax to — the jurisdiction where the customer is located, regardless of where the operator itself is based.
What is Point of Consumption Tax?
A tax levied on gambling based on where the customer is located rather than where the operator is based.
More term comparisons
Understanding, not advice. This explains how two terms differ so you can read the industry clearly. Nothing here treats gambling as a way to make money; the maths favours the house. 18+.