Paddy Power Deviates From Popular Opinion Over Gambling Tax Hikes

Paddy Power co-founder Stewart Kenny has strenuously argued that there should be a hike in gambling taxes. This came to a head yesterday when he gave evidence to the Commons Treasury committee.

The debate over taxing the gambling industry has reached fever pitch over the past few months. Chancellor Rachel Reeves is due to deliver her budget next month, and it has been widely speculated that gambling taxes could be raised.

So far, the topic has been a thorny issue, but Kenny, who has been a big critic of the industry since retiring, has waded in with his views. He failed to hesitate in clamouring for the Government to step up measures to tackle problem bettors.

Stopping bookmakers ‘sucking people in’

Although the Betting and Gaming Council CEO, Grainne Hurst, repeatedly suggested there were no social harms with gambling, Kenny, who was on the Paddy Power board for 29 years, intimated tougher action needs to be taken. Research carried out has shown that over 22 million people in the UK like to have a flutter every month.

Kenny firmly believes bookmakers are meticulous with their advertising tactics. These tactics, he suggested, were responsible for ‘sucking in’ vulnerable bettors.

He said: “When you open an account to have a bet on the next general election or Manchester United to win the Premiership… within 24 hours [bookmakers] send you free spins in the casino. It is rather like going into a bar for your first drink and having a shandy and the barman… says: ‘Why not have a triple strength brandy on the house?’.

“So if we can disincentivise the bookmakers from sucking people from the least addictive product to the most addictive product, that I think is the most important [objective].”

Kenny breaking away from popular opinion

Despite breaking away from convention in terms of rallying behind other bookmakers, Kenny has still had some backing. Theo Bertram, for example, who is the director of the Social Market Foundation has championed the cause for stricter intervention to alleviate harmful gambling.

He said: “Don’t let the gambling industry pretend to you that sitting on your phone, being addicted to that app and losing thousands of pounds is somehow putting more people in your constituency into work.”

Is it all just scaremongering?

Figures have been bandied about suggesting the grim reality of what could happen if gambling taxes are pushed up. Indeed, it is thought that up to 40,000 jobs could be wiped out and over £8 billion could be redirected to the black market.

Moreover, Paddy Power admitted earlier this month it could shut as many as 57 betting shops across the UK and Ireland, putting 247 jobs at risk. However, Kenny has rubbished claims that bookies would go under, labelling it as ‘scaremongering’.

He added: “It is scaremongering. I was using exactly the same arguments 25 years ago… and betting businesses have exploded in profits.

“I do not see any reason why betting shops or those employed in betting shops should go down because of the tax rises.”

What lies in store?

The evidence given by Kenny during the session was rather telling, even if his thoughts don’t align with others in the gambling industry. Testing times lie ahead, but everyone will be watching with bated breath to see whether or not Reeves’ budget speech turns their nightmares into a reality.