Stewart Kenny, a co-founder of Paddy Power, has criticized betting companies for luring inexperienced gamblers into addictive games to boost their profits. Kenny, who served on the company’s board for 29 years, claimed he left after the firm allegedly removed measures meant to assist gambling addicts.
Testifying before the Commons Treasury committee, Kenny highlighted that bookmakers often offer players free spins for online casino games shortly after they open an account, likening it to a scenario where a barman encourages a customer to switch from a light drink to a much stronger one.
Advocates, including Kenny, are urging Chancellor Rachel Reeves to impose higher taxes on gambling firms in the upcoming Budget. Research commissioned by the Betting and Gaming Council warned that proposed tax increases could lead to job losses and a significant shift of funds towards the black market.
Carsten Jung from the Institute for Public Policy Research emphasized the need for higher taxation on gambling companies to offset the societal harm they cause, particularly in terms of addiction among younger men. Jung proposed raising taxes on remote gambling, machine games, and general betting to generate substantial revenue.
Dr. Theo Bertram from the Social Market Foundation advocated for increased taxes on online slot machines and casinos, while safeguarding traditional horse racing betting. He disputed claims that higher taxes would drive consumers to illegal betting outlets, citing research that refutes such assertions.
MPs were informed that the average betting levy in the industry stands at 22%, with exemptions from VAT. Stephen Hodgson, chair of the Betting and Gaming Council’s tax committee, argued that the actual tax rate surpasses 65% when considering all taxes imposed on the industry.
Grainne Hurst, CEO of the Betting and Gaming Council, defended the industry, pointing out that millions of punters engage in gambling activities each month without any issues. She disputed claims of widespread social harm, stating that only a small fraction (0.4%) of customers face gambling problems.
Hurst warned that higher taxes could lead to diminished odds for punters, potentially driving them towards illicit gambling platforms. She emphasized that increased taxation typically results in reduced activity and changes in consumer behavior.
