Former Paddy Power Boss Calls For Gambling Tax Hikes To Deter

The former employer of Paddy Power has required higher gambling taxes to discourage bookies from methods that draw punters into more addicting video games, as he said profits across the sector were "taking off".


Stewart Kenny, who co-founded the betting company however has actually become a critic of the industry's strategies since retiring, also implicated companies of "scaremongering" over cautions about gambling tax hikes.


Mr Kenny informed MPs on the Treasury Committee: "I really think that, for the parts of the market that are the many harm, that you tax greater to disincentivise the bookmakers from drawing you from the sports book into the online casino."


I do not see any reason wagering shops or individuals used in betting stores need to go down because of the tax increases


Stewart Kenny, Paddy Power co-founder


He stated wagering companies are drawing people "from the least-addictive item to the most-addictive product" by handing out totally free spins on their online casino when they make an account to bet on sports.


This was a bigger issue for younger whose lives might be "destroyed" by problem gambling, he stated.


Mr Kenny also declined claims from betting companies that greater taxation would impact tasks in the sector and drive more people towards black market wagering.


"It is scaremongering," he told the MPs.


"I was utilizing precisely the exact same arguments 25 years ago ... and betting businesses have taken off in revenues.


"I do not see any reason wagering stores or individuals used in wagering shops must decrease because of the tax increases," he stated, including that he does not anticipate punters getting a "bad offer" as a result.


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


Stewart Kenny declined claims from betting firms that tax rises would cause job losses in the sector (House of Commons/UK Parliament/PA)


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


A spokesperson for the UK and Ireland likewise alerted that a "greater gambling tax might have a substantial impact on tasks and financial investment throughout the industry and drive more clients into open arms of unlicensed operators on the prohibited, black market".


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


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


Mr Kenny, who stepped down from the board of Paddy Power nearly a years back, stated there are still parts of the gambling industry that he believes can "thrive".


"I was part of the system, I have substantial regrets, but I'm still a believer in the gaming industry belonging to the home entertainment mix," he stated.


He said disincentivising business to lure punters towards "highly addicting" online gambling establishments could assist them "get back to marketing horse racing and wagering on normal events".


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


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