The co-founder of Paddy Power has criticized betting companies for luring inexperienced gamblers into addictive games to boost their profits. Stewart Kenny, a former board member of the company for nearly three decades, alleged that he left after the company removed measures meant to assist gambling addicts.
During a hearing with the Commons Treasury committee, Kenny highlighted that bookmakers often offer players free spins for online casino games shortly after they open an account. He compared this practice to a bartender encouraging a customer who had a mild drink to switch to a much stronger one for free.
Kenny, along with others, is advocating for increased taxes on gambling firms, urging Chancellor Rachel Reeves to consider this in the upcoming Budget. Research conducted by the Betting and Gaming Council suggested that proposed tax hikes could lead to job losses and the diversion of significant revenue to the black market.
The debate on taxing gambling firms further was supported by Carsten Jung from the Institute for Public Policy Research, who emphasized the need to address the social harm caused by these companies. Jung proposed raising taxes on remote gambling, machine games, and general betting to generate additional revenue.
Dr. Theo Bertram, from the Social Market Foundation, recommended higher taxes on online slot machines and casinos while protecting traditional horse racing betting. He refuted claims that increased taxes would drive consumers to illegal betting platforms.
The Betting and Gaming Council defended the industry, stating that a small percentage of customers experience gambling problems and that the majority engage safely. They warned that higher taxes could result in worse odds for bettors, potentially leading them to seek alternatives in the black market.