The co-founder of Paddy Power has criticized betting companies for luring inexperienced gamblers into addictive games to increase their profits. Stewart Kenny, who served on the firm’s board for nearly three decades, alleges that the company abandoned measures meant to assist problem gamblers, leading to his departure.
During his testimony to the Commons Treasury committee, Kenny highlighted that bookmakers often offer free spins for online casino games shortly after a new account is opened, drawing parallels to a bar offering stronger drinks after a customer finishes a light beverage. He emphasized the need to deter bookmakers from pushing customers towards more addictive gambling activities.
Advocates, including Kenny, are urging Chancellor Rachel Reeves to impose higher taxes on gambling firms in the upcoming Budget. Research backed by the Betting and Gaming Council warns that proposed tax increases could result in significant job losses and drive billions of pounds of revenue into the illicit gambling market.
Carsten Jung from the Institute for Public Policy Research insisted that gambling firms should face increased taxation to offset the societal harm caused by addiction, particularly among young men. The focus, according to Jung, should be on raising duties for remote gambling rather than traditional betting on horse racing.
Experts also suggested that online slot machines and casinos should bear the brunt of tax hikes, with a push for protecting traditional horse racing betting. Concerns were raised about the rapid growth of remote gaming, especially during the pandemic, which saw a surge in online gambling activities.
Discussions at the parliamentary hearing revealed conflicting views on the actual tax rates imposed on the industry, with claims of a higher effective tax rate than officially reported. The Betting and Gaming Council defended the industry, emphasizing that the vast majority of customers engage in gambling responsibly, with only a small fraction experiencing issues.
The debate over higher taxes on gambling operations continues, with industry representatives warning of potential negative consequences such as reduced odds for bettors and a possible shift towards unregulated black market operators due to altered customer behavior in response to increased taxation.
