Former Paddy Power Boss Calls For Gambling Tax Hikes To Deter

The former manager of Paddy Power has actually called for greater betting taxes to hinder bookies from methods that draw punters into more addicting games, as he stated revenues throughout the sector were "blowing up".


Stewart Kenny, who co-founded the betting firm but has ended up being a critic of the industry's strategies given that retiring, also accused companies of "scaremongering" over warnings about gambling tax hikes.


Mr Kenny told MPs on the Treasury Committee: "I actually believe that, for the parts of the industry that are the most damage, that you tax higher to disincentivise the bookmakers from sucking you from the sports book into the online casino."


I do not see any reason wagering shops or people employed in wagering stores need to go down since of the tax increases


Stewart Kenny, Paddy Power co-founder


He stated betting companies are drawing individuals "from the least-addictive product to the most-addictive product" by handing out free spins on their online casino when they make an account to wager on sports.


This was a larger issue for more youthful individuals whose lives could be "ruined" by issue gaming, he stated.


Mr Kenny likewise turned down claims from betting companies that higher taxation would impact jobs in the sector and drive more people towards black market betting.


"It is scaremongering," he informed the MPs.


"I was utilizing precisely the very same arguments 25 years ago ... and betting services have taken off in earnings.


"I do not see any reason why betting shops or individuals used in betting shops ought to go down since of the tax rises," he said, including that he does not anticipate punters getting a "bad deal" as an outcome.


Parent company Flutter, which also owns Betfair and Sky Bet, informed Paddy Power personnel previously this month it was shutting 57 of their betting stores in the UK and Ireland, putting practically 250 workers at danger.


Stewart Kenny turned down claims from betting firms that tax increases would lead to job losses in the sector (House of Commons/UK Parliament/PA)


The US-listed company blamed the closures on "increasing cost pressures and difficult market conditions".


A representative for the UK and Ireland also warned that a "higher betting tax might have a significant influence on jobs and financial investment throughout the industry and drive more consumers into open arms of unlicensed operators on the illegal, black market".


William Hill owner Evoke likewise recently said it was thinking about "more shop closures" if it is hit by tax increases in the UK.


On Monday, research commissioned by the Betting and Gaming Council found that proposed tax hikes risk the loss of 40,000 tasks and could divert ₤ 8.4 billion to the black market.


Mr Kenny, who stepped down from the board of Paddy Power almost a years back, stated there are still parts of the betting industry that he thinks can "grow".


"I belonged to the system, I have huge remorses, however I'm still a follower in the betting market belonging to the home entertainment mix," he said.


He stated disincentivising companies to attract punters towards "extremely addicting" online casinos could help them "return to marketing horse racing and betting on normal events".


Theo Bertram, director of the Social Market Foundation, which argues the betting industry should be taxed more, told MPs activities such as horseracing ought to be safeguarded.


During the committee session he stated: "Don't let the gaming market 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."