Some of Britains betting giants are revealed to have quietly lobbied Treasury officials against a proposed industry crackdown, claiming it will cost millions of pounds in lost tax receipts.
Executives representing Bet365, Paddy Power and Ladbrokes met officials from the Treasury and Revenue and Customs, warning a radical overhaul of the industry could drive gamblers to the black market. The meeting was with tax officials rather than ministers and was therefore not required to be automatically disclosed.
The betting industry claims there is a very real risk that the taxes of about 3.2bn a year it hands to the Treasury could be hit by tougher rules for the sector. A government white paper on gambling reforms is due to be published shortly.
Matt Zarb-Cousin, director of campaign group Clean Up Gambling, said: The industry is trying to water down the proposed reforms in the gambling review by lobbying tax officials under the radar. This is massive propaganda from an industry that has engaged in tax avoidance for years. I hope the Treasury isnt buying it. There needs to be full transparency over this lobbying campaign.
The Department for Digital, Culture, Media and Sport announced a review of the gambling laws in December 2020 amid concerns that too many people are suffering significant harm. An NHS survey in 2018 showed there were about 245,000 problem gamblers in England. A Public Health England study last year estimated there are 409 suicides a year associated with problem gambling.
Campaigners want a new levy on the industry to fund research and treatment for problem gamblers. They also want to see stricter checks on what gamblers can afford to pay, new stake limits on online slot games, a ban on gambling advertising in sport and a ban on VIP schemes.
Documents released under freedom of information laws reveal that executives from Bet365, Flutter, which operates the Paddy Power and Betfair brands, and Entain, which operates the Ladbrokes, Coral and PartyCasino brands, held an online meeting with the Treasury and Revenue and Custom tax specialists on 7 October last year and warned against what they feared may be excessive proposed regulations in the review.
The betting firms submitted a report by PricewaterhouseCoopers, commissioned by the industry, which found an increase in unlicensed online gambling in the UK. The betting firms warned the black market could be fuelled by a wide-ranging overhaul of gambling laws.
A two-page document presented to officials warned: It is vital that the government takes a holistic view of tax and regulatory changes over the coming months or there is the very real risk that the UKs remote gambling sector is hit in a way that not only reduces its economic and fiscal contribution, but also increases levels of gambling-related harm by incentivising a shift to unlicensed gambling operators that pay no UK tax.
It added that executives would be keen to engage in further dialogue with tax officials to discuss developments as DCMS prepares its white paper for publication. The betting industry opposes proposals for a statutory levy and what it claims would be overzealous checks on what customers can afford to bet.
The details of the lobbying by the industry have angered relatives of those who have lost their lives while in the grip of gambling addiction. The charity Gambling with Lives, a community of families bereaved by gambling-related suicides, has spearheaded the campaign for reform. Judith Bruney, 62, from Sheffield, whose 25-year-old son Chris killed himself in April 2017 after he gambled 119,395 in five days without spending checks, said: The industry wants to get away with the minimum change that they can. Surely they must know what damage it causes.
Charles Ritchie, co-founder with his wife Liz of Gambling with Lives, said there needed to be a package of new reforms, including redesigning the most addictive games, and tougher sanctions against the industry when it failed to implement player safeguards. He said: You have a highly profitable industry and the fines can be viewed as a cost of business. There needs to be a more effective punishment regime.
Matt Gaskell, clinical lead of the NHS Northern Gambling Service, supports a statutory levy for the industry to fund research and treatment.
He said: Many of the operators havent fulfilled their obligations under the voluntary system. A statutory levy would ensure a system of stable and sustained funding.
The Betting and Gaming Council, which represents the gambling industry, says it supports the gambling review, but that it also needs to strike the right balance between protecting vulnerable people and not spoiling the enjoyment of those who bet safely. It says the industry is taking a package of measures to protect gamblers who may be at risk of harm, and that Gambling Commission figures show the number of problem gamblers is falling.
Betting firms have faced criticism over the years for basing their operations overseas including in Gibraltar and Malta which can reduce their tax bills. Bet365 has its headquarters in Britain and says it is one of the countrys biggest taxpayers.
A spokesperson said: It is absolutely normal and appropriate for the government generally to engage with us and others in our industry in the context of its ongoing review of the Gambling Act, as would be the case across all sectors undergoing potentially significant regulatory changes.
An Entain spokesperson said: Entain is proud to be among the top 20 corporate taxpayers to the UK Treasury. As such, and in common with thousands of other UK companies, we are of course in regular contact with HMT and HMRC officials.
A Flutter spokesperson said: Flutter paid 1.6bn in tax globally last year, including more than 600m in the UK where we are one of the largest corporate taxpayers. We engage with a range of stakeholders, including HMT, and we are proud of the significant contribution we make to the UK economy.
Treasury officials said they regularly meet stakeholders from across industry to hear their views.
Read the rest here:
Revealed: betting giants lobbied UK government over proposed crackdown - The Guardian
- Gambling Addiction and Problem Gambling: Learn How to Stop ... - December 12th, 2016 [December 12th, 2016]
- Remote Gambling Association (RGA) - December 16th, 2016 [December 16th, 2016]
- William Hill Casino Club - Up To 150 Casino Bonus - December 19th, 2016 [December 19th, 2016]
- Gambling - The New York Times - December 31st, 2016 [December 31st, 2016]
- Trusted Online Gambling Sites Since 1996 - Online.Gambling.org - January 7th, 2017 [January 7th, 2017]
- Casino Gambling Web | Best Online Gambling News and Casinos ... - January 11th, 2017 [January 11th, 2017]
- Gambling Addiction and Problem Gambling - helpguide.org - January 15th, 2017 [January 15th, 2017]
- Industry: Crackdown on illegal gambling in the Philippines now ... - GamingTodaySlotsToday - February 7th, 2017 [February 7th, 2017]
- Military should screen for gambling disorder, GAO says - Virginian-Pilot - February 7th, 2017 [February 7th, 2017]
- Gambling with people's autonomy | Liberties | Risk | spiked - Spiked - February 7th, 2017 [February 7th, 2017]
- Bill introduced to lower age for legal gambling in Nevada - Las Vegas Review-Journal - February 7th, 2017 [February 7th, 2017]
- FIFA YouTuber Pleads Guilty To Gambling Charges [UPDATE] - GameSpot - February 7th, 2017 [February 7th, 2017]
- Gambling Stock Roundup: Macau Sales Rise Again in January, Nevada Records a Drop in December - Yahoo Finance - February 7th, 2017 [February 7th, 2017]
- Super Bowl sets gambling record at Nevada sports books - Reuters - February 7th, 2017 [February 7th, 2017]
- Older gamblers face worse odds for addiction - Times Herald-Record - February 7th, 2017 [February 7th, 2017]
- How to Handle Gambling Wins and Losses This Tax Season - TheStreet.com - February 7th, 2017 [February 7th, 2017]
- GAO report recommends military members be screened for ... - wtkr.com - February 7th, 2017 [February 7th, 2017]
- The Newest Challenge in Gambling: Finding Growth - Motley Fool - February 7th, 2017 [February 7th, 2017]
- Raising a question about gambling prohibition - Dothan Eagle - February 8th, 2017 [February 8th, 2017]
- A Creepy Dude Is Your Inner Gambling Addict in These Horrifying PSAs From Tom Tagholm - Fishbowl NY (blog) - February 8th, 2017 [February 8th, 2017]
- Super Bowl Betting Tally Helps Make the Case for Legalized Sports Gambling - TheStreet.com - February 8th, 2017 [February 8th, 2017]
- MLB commissioner admits the league is rethinking its stance on gambling - FOXSports.com - February 8th, 2017 [February 8th, 2017]
- Why I love fake gambling and in-game casinos according to a psychologist - PC Gamer - February 8th, 2017 [February 8th, 2017]
- YouTubers fined for running illegal FIFA 17 gambling site - Ars Technica - February 8th, 2017 [February 8th, 2017]
- Deducting Gambling Losses on Your Taxes - TheStreet.com - February 9th, 2017 [February 9th, 2017]
- Gambling pot grows for Madison County - Utica Observer Dispatch - February 9th, 2017 [February 9th, 2017]
- How Vietnam Is Changing Its Gambling Rules To Win Foreign Investment - Forbes - February 9th, 2017 [February 9th, 2017]
- No truth to alleged link between missing Spencerport teen, illegal gambling - 13WHAM-TV - February 9th, 2017 [February 9th, 2017]
- The world's biggest gamblers - The Economist (blog) - February 9th, 2017 [February 9th, 2017]
- Idaho House Panel Introduces Bill Limiting Indian Gambling - Boise State Public Radio - February 9th, 2017 [February 9th, 2017]
- Pennsylvania Omnibus Gambling Bill Presented to House - Casino.Org News - February 10th, 2017 [February 10th, 2017]
- Gamblers caught in Hat Yai open-air casino bust | Bangkok Post: news - Bangkok Post - February 10th, 2017 [February 10th, 2017]
- Men Fined Over FIFA Gambling Operation - Card Player - CardPlayer.com - February 10th, 2017 [February 10th, 2017]
- Rob Manfred may change MLB's stance on gambling - SB Nation - February 10th, 2017 [February 10th, 2017]
- Do you have a mobile gambling/gaming problem? - KMTV - February 10th, 2017 [February 10th, 2017]
- OUR VIEW: Transparency needed in gambling operations - Pacific Daily News - February 11th, 2017 [February 11th, 2017]
- New York State transformation into the gambling big leagues nearly complete with opening of newest casino - The Daily Freeman - February 11th, 2017 [February 11th, 2017]
- Kenya: Gambling in Kenya Gets Out of Hand - AllAfrica.com - February 11th, 2017 [February 11th, 2017]
- Gambling Responsibly - New York Times - February 11th, 2017 [February 11th, 2017]
- Duterte targets illegal gambling in the Philippines - Yahoo News - February 12th, 2017 [February 12th, 2017]
- US Grabs Biggest Global Gambling Industry Win Share in 2016 - Casino News Daily - February 12th, 2017 [February 12th, 2017]
- UFC 208 odds, gambling guide - MMA Fighting - February 12th, 2017 [February 12th, 2017]
- Calendar urges gamblers to cut their losses l Dayton, Ohio - Dayton Daily News - February 12th, 2017 [February 12th, 2017]
- Gambling Manga "Akagi" Begins Countdown to Conclusion - Crunchyroll News - February 12th, 2017 [February 12th, 2017]
- Football's gambling problem: You better, you better, you bet - Football365.com - February 13th, 2017 [February 13th, 2017]
- States are gambling with law enforcement safety - The Hill (blog) - February 13th, 2017 [February 13th, 2017]
- AFL's gambling ads concern for Cats star - Wide World of Sports - February 13th, 2017 [February 13th, 2017]
- Celeb Gambling Ring Members Fear They've Been CAUGHT On Wiretaps Making Illegal Bets, Source Claims - Radar Online - February 13th, 2017 [February 13th, 2017]
- Highway Patrol: Raid of Warren bar uncovers illegal gambling - WKBN.com - February 13th, 2017 [February 13th, 2017]
- Scary graph shows how Australians are the biggest losers - NEWS.com.au - February 13th, 2017 [February 13th, 2017]
- Bato: War on illegal gambling won't be bloody - Philippine Star - February 13th, 2017 [February 13th, 2017]
- Last holdout Lakewood to vote on repealing video gambling ban - Northwest Herald - February 14th, 2017 [February 14th, 2017]
- AFL's gambling ads a concern for Geelong Cats star Harry Taylor - The Age - February 14th, 2017 [February 14th, 2017]
- Online Casinos Generate A Third Of UK Gambling Dollars - CardPlayer.com - February 14th, 2017 [February 14th, 2017]
- Darlington deputies bust gambling house in Hartsville | News ... - SCNow - February 14th, 2017 [February 14th, 2017]
- Kim Jong Un's gambling half-brother reportedly assassinated - CBS News - February 14th, 2017 [February 14th, 2017]
- BitcoinCasino.us Ensures Instant Payouts and Responsible Gambling - newsBTC - February 15th, 2017 [February 15th, 2017]
- Gambling operators are cashing in on teens' addiction to online games - The Canberra Times - February 15th, 2017 [February 15th, 2017]
- Americans Lost $116.9B Gambling In 2016: Report - CardPlayer.com - February 15th, 2017 [February 15th, 2017]
- Levine: Rick Hahn, White Sox Gambling On Right Trades At Right Time - CBS Local - February 15th, 2017 [February 15th, 2017]
- Wesfarmers considers pokies exit in bid to tackle problem gambling - ABC Online - February 15th, 2017 [February 15th, 2017]
- Massive felony gambling raid in Marietta | WAGA - FOX 5 Atlanta - February 15th, 2017 [February 15th, 2017]
- 'War on gambling' starts with small fry - Inquirer.net - February 16th, 2017 [February 16th, 2017]
- Edgeless Casino Introduces Revolutionary Transparent 0% House Edge Online Gambling - newsBTC - February 16th, 2017 [February 16th, 2017]
- FF12: When is gambling illegal in Kansas? - KWCH - February 16th, 2017 [February 16th, 2017]
- Osage woman accused of stealing, gambling mother's money - Waterloo Cedar Falls Courier - February 16th, 2017 [February 16th, 2017]
- 'Operation Parlay' Leads To Gambling Raid, Arrest - Patch.com - February 16th, 2017 [February 16th, 2017]
- Pete Rose defends legal gambling: 'Who am I hurting?' - Yahoo Sports - Yahoo Sports - February 16th, 2017 [February 16th, 2017]
- Cops bust alleged gambling ring being run out of Cobb storefronts - Atlanta Journal Constitution - February 16th, 2017 [February 16th, 2017]
- Dunlap: State Rep. Gets It Right With Sports Gambling - CBS Local - February 16th, 2017 [February 16th, 2017]
- Gambling Addiction Treatment Center, Rehab - Non Gambler - February 16th, 2017 [February 16th, 2017]
- Problem Gambling Online Resources - Drugfreeinfo.org - February 16th, 2017 [February 16th, 2017]
- Attleboro seeks gambling grant for new dispatch center - The Sun Chronicle - February 17th, 2017 [February 17th, 2017]
- House gambling bill teed up for next week - SaintPetersBlog (blog) - February 17th, 2017 [February 17th, 2017]
- Firms oppose Bill regulating gambling - Daily Nation - February 17th, 2017 [February 17th, 2017]
- Tim Simona faces NRL deregistration after alleged breaches of gambling rules - The Sydney Morning Herald - February 17th, 2017 [February 17th, 2017]
- Washington State Gambling Commission - February 17th, 2017 [February 17th, 2017]
- Online Casino USA Friendly Online Casinos for 2017 - February 17th, 2017 [February 17th, 2017]
- Records: 70 gambling machines seized, two arrested in Alamo raid ... - KGBT-TV - February 18th, 2017 [February 18th, 2017]
- Florida House Goes Conservative on Gambling Expansion with New ... - Casino News Daily - February 18th, 2017 [February 18th, 2017]