Treasury Warned Tax Hike Won’t Solve Gambling
Highlights
-
IPPR economic policy expert Carsten Jung said a tax hike isn’t enough to address the problem gambling.
-
Jung’s opinion is that the Netherlands is not a good example to use in the tax hike debate.
The increase in gambling taxes is not a sufficient policy to address problem gambling, says IPPR economic policy expert Carsten Jung, to the UK Parliament Treasury Committee.
In August, IPPR instructed the government to raise taxes from 21% to 50% on remote gaming duty and from 20% to 50% of the overall profit for machine game duty. This could result in an annual increase of $4 billion in tax revenue.
Ex-industry stalwart and co-founder of Paddy Power, Stewart Kenny, suggested to the committee that gambling offerings with more risk should be taxed heavily “to disincentivize bookmakers from sucking [players] from sportsbooks into the online casino”.
Jugo, in response, stated that a higher tax alone for gaming machines and remote betting cannot address problem gambling. He also mentioned that the Netherlands is not a viable example that a tax hike would promote the black market.
He supported his claims, stating that the Netherlands not only introduced tax but also made other regulatory changes. Jugo concluded by using Estonia as an example of how, despite lower taxes, there exists only a lower share of the legal market, indicating no correlation between tax and black market.
For more insights, Read Here!
In August, IPPR instructed the government to raise taxes from 21% to 50% on remote gaming duty and from 20% to 50% of the overall profit for machine game duty. This could result in an annual increase of $4 billion in tax revenue.
Ex-industry stalwart and co-founder of Paddy Power, Stewart Kenny, suggested to the committee that gambling offerings with more risk should be taxed heavily “to disincentivize bookmakers from sucking [players] from sportsbooks into the online casino”.
Jugo, in response, stated that a higher tax alone for gaming machines and remote betting cannot address problem gambling. He also mentioned that the Netherlands is not a viable example that a tax hike would promote the black market.
He supported his claims, stating that the Netherlands not only introduced tax but also made other regulatory changes. Jugo concluded by using Estonia as an example of how, despite lower taxes, there exists only a lower share of the legal market, indicating no correlation between tax and black market.
For more insights, Read Here!
