Former Paddy Power Boss Calls For Gambling Tax Hikes To Deter

The former manager of Paddy Power has called for greater gambling taxes to deter bookies from methods that draw punters into more addictive video games, as he stated profits throughout the sector were "exploding".


Stewart Kenny, who co-founded the betting firm but has become a critic of the industry's tactics because retiring, also accused companies of "scaremongering" over cautions about gambling tax walkings.


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


I do not see any reason wagering shops or people employed in wagering stores must decrease because of the tax rises


Stewart Kenny, Paddy Power co-founder


He said wagering 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 bank on sports.


This was a larger issue for younger people whose lives might be "damaged" by issue gaming, he stated.


Mr Kenny also rejected claims from betting firms that greater tax would affect tasks in the sector and drive more individuals towards black market wagering.


"It is scaremongering," he informed the MPs.


"I was using exactly the same arguments 25 years ago ... and betting organizations have actually taken off in profits.


"I do not see any reason betting shops or people utilized in wagering shops ought to decrease due to the fact that of the tax increases," he stated, adding that he does not visualize punters getting a "bad deal" as an outcome.


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


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


The US-listed company blamed the closures on "increasing expense pressures and conditions".


A representative for the UK and Ireland likewise alerted that a "greater betting tax could have a considerable effect on jobs and financial investment across the market and drive more clients into open arms of unlicensed operators on the unlawful, black market".


William Hill owner Evoke also recently stated it was considering "further store closures" if it is hit by tax boosts in the UK.


On Monday, research commissioned by the Betting and Gaming Council discovered that proposed tax walkings run the risk of 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 nearly a years earlier, stated there are still parts of the gaming market that he thinks can "thrive".


"I was part of the system, I have substantial remorses, however I'm still a believer in the gambling market belonging to the home entertainment mix," he stated.


He said disincentivising companies to lure punters towards "extremely addicting" online gambling establishments might assist them "get back to marketing horse racing and banking on normal occasions".


Theo Bertram, director of the Social Market Foundation, which argues the gaming market ought to be taxed more, informed MPs activities such as horseracing should be protected.


During the committee session he said: "Don't let the gambling industry pretend to you that resting on your phone, being addicted to that app and losing countless pounds is somehow putting more people in your constituency into work."