Stewart Kenny, one of the founders 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 nearly three decades, claimed he left after measures to assist gambling addicts were allegedly removed.
During his testimony to the Commons Treasury committee, Kenny highlighted how bookmakers often entice new players with free spins for online casino games shortly after they register. He compared this practice to a bar offering a strong drink on the house after a customer finishes a light beverage.
Kenny and others are advocating for higher taxes on gambling firms, with Rachel Reeves being urged to address this in the upcoming Budget. A study commissioned by the Betting and Gaming Council warned that proposed tax increases could lead to job losses and drive billions of pounds to the black market.
Experts like Carsten Jung from the Institute for Public Policy Research argue that gambling companies should face increased taxation to offset the social harm caused by addiction. They propose raising taxes on remote gambling, machine games, and general betting to generate additional revenue.
Dr. Theo Bertram, from the Social Market Foundation, emphasized the surge in online gambling during the COVID-19 pandemic and recommended imposing higher taxes on online slot machines and casinos while safeguarding traditional horse racing betting. He refuted claims that tax hikes would push consumers towards illegal betting platforms.
Members of Parliament were informed that the betting industry benefits from an average levy of 22% and is exempt from VAT. Despite industry representatives asserting that only a small fraction of customers experience gambling problems, critics argue that taxing gambling activities more could deter excessive betting and protect vulnerable individuals.
Grainne Hurst, the CEO of the Betting and Gaming Council, defended the industry, stating that the majority of customers engage responsibly. She cautioned that increased taxes might lead to poorer odds for bettors, potentially driving them towards illegal operators.