Irish Politician Implores Chancellor to End ‘Predatory’ Online Gambling

An Irish politician has implored the Chancellor of the Exchequer to hike online gambling taxes in a bid to end the industry’s ‘predatory’ activities. Sinn Féin assembly member Philip McGuigan has written a letter to Rachel Reeves urging her to take a tough stance on the most harmful forms of online gambling, such as slot games and roulette at online casinos, suggesting they are the root cause of the problem.

Speculation has been mounting for months about the course of action the government might take to tax the gambling industry. It is widely thought that the government has a £50 billion financial black hole that needs filling urgently, and Reeves has admitted betting companies should be paying their ‘fair share’.

Personal struggles revealed

McGuigan, who acts as the chair of a Stormont All-Party Group, has revealed he has first-hand experience of suffering from an online gambling addiction in the past. He admitted that at times he was subject to unrelenting promotional pushes from gambling sites when he was trying to get to grips with his problem.

McGuigan told the BBC: “I have suffered at the hands of gambling harm; thankfully every day now is a day in recovery.

“There were times, for example, when I self-excluded from sites, but during that period I was receiving e-mails from the same site encouraging me back in with free bets, with other types of incentives.

“We have seen that time and time again, whether it’s through predatory advertising, predatory e-mails.”

Offsetting social ills properly

Currently, winnings claimed by bettors aren’t taxed in the UK. Gambling companies are subject to additional taxes, and online gambling now accounts for nearly half of the industry’s takings, illustrating a significant shift from in-person betting.

Politicians and gambling industry figures have been at loggerheads over the issue of taxation for a while. The Betting and Gaming Council (BGC) CEO Grainne Hurst has revealed earlier this month that the UK could end up like France or Sweden with ‘huge’ black market sites if taxes were to soar.

Meanwhile, former Prime Minister Gordon Brown recently renewed calls for gambling taxes to be increased in a bid to end child poverty. The child benefit cap has been driving the gambling debate, and the Institute for Public Policy Research (IPPR) claimed putting up Remote Gambling Duty (RGD) could raise around £3 billion which would bolster government coffers.

And McGuigan admits targeting the most dangerous forms of online gambling is the best approach. Indeed, he suggested that having a harmonised rate would make it more appealing for gambling firms to ‘cross-sell’ their activities, which would drive punters to more harmful online gambling games.

Dealing with the unknown

At the moment, gambling companies have largely been dealing with the unknown. There have been fears spread that the industry could be damaged by job losses, and several high-profile betting companies, such as Betfred and Paddy Power, have pointed to the fact that they may have to close down betting shops pending on the new tax rates enforced.

McGuigan’s concerns are valid, and he has recognised there is a chance that any changes introduced could be detrimental as opposed to beneficial. More clarity will be provided in Reeves’ budget announcement this week, and while there have been calls to ensure the government doesn’t cave into industry ‘scaremongering’, finding a compromise that suits all parties should be the goal.