Former Paddy Power Boss Require Gambling Tax Hikes To Deter
The previous manager of Paddy Power has called for greater gaming taxes to deter bookies from techniques that draw punters into more addictive video games, as he stated revenues across the sector were "blowing up".
Stewart Kenny, who co-founded the wagering firm however has become a critic of the industry's techniques since retiring, also accused firms of "scaremongering" over warnings about betting tax walkings.
Mr Kenny told MPs on the Treasury Committee: "I really believe that, for the parts of the market that are the most damage, that you tax higher to disincentivise the bookies from sucking you from the sports book into the online gambling establishment."
I do not see any reason betting shops or people used in betting stores should decrease since of the tax increases
Stewart Kenny, Paddy Power co-founder
He stated betting companies are drawing individuals "from the least-addictive item to the most-addictive item" by handing out complimentary spins on their online casino when they make an account to bank on sports.
This was a larger problem for more youthful people whose lives might be "destroyed" by issue gaming, he said.
Mr Kenny also rejected claims from gambling companies that greater tax would in the sector and drive more people towards black market wagering.
"It is scaremongering," he told the MPs.
"I was utilizing exactly the very same arguments 25 years ago ... and betting services have exploded in earnings.
"I do not see any reason why betting shops or individuals used in wagering stores need to go down because of the tax increases," he stated, adding that he does not predict punters getting a "bad deal" as a result.
Parent firm Flutter, which also owns Betfair and Sky Bet, informed Paddy Power staff earlier this month it was shutting 57 of their wagering shops in the UK and Ireland, putting almost 250 employees at risk.
Stewart Kenny declined claims from gambling companies that tax rises would cause task losses in the sector (House of Commons/UK Parliament/PA)
The US-listed business blamed the closures on "increasing cost pressures and challenging market conditions".
A spokesperson for the UK and Ireland likewise cautioned that a "higher betting tax might have a substantial influence on jobs and financial investment across the market and drive more clients into open arms of unlicensed operators on the illegal, black market".
William Hill owner Evoke also recently said it was considering "more shop closures" if it is hit by tax boosts in the UK.
On Monday, research study commissioned by the Betting and Gaming Council found 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 decade back, said there are still parts of the betting market that he thinks can "thrive".
"I was part of the system, I have big remorses, however I'm still a believer in the gaming industry belonging to the home entertainment mix," he stated.
He stated disincentivising companies to lure punters towards "highly addicting" online casinos could help them "get back to marketing horse racing and banking on typical events".
Theo Bertram, director of the Social Market Foundation, which argues the betting industry should be taxed more, informed MPs activities such as horseracing should be secured.
During the committee session he stated: "Don't let the gaming market pretend to you that sitting on your phone, being addicted to that app and losing countless pounds is in some way putting more individuals in your constituency into work."