Gambling does not cause any ‘social ills’, lobbyist tells incredulous MPs | Gambling
The boss of the UK’s main betting and gaming lobby group told MPs that “gambling is not a social disease” as he warned against introducing higher taxes on the industry in the November budget.
Grainne Hurst, chief executive of the Betting and Gaming Council, made repeated statements to parliament’s Treasury select committee on Tuesday, where she claimed higher taxes would lead to thousands of job losses and push punters to use hidden market services.
Hurst made the comments as part of the gambling industry’s lobbying effort against the calls. increase taxes on the industry – including products seen as most risky for creating problem gamblers, such as online casinos and the betting machines that crowd high street adult gaming centers (AGCs).
Committee member John Glen told Hurst during a sometimes tense hearing: “This issue has become important as we approach the budget because people and government [are] “We are disappointed that the taxation of something that causes a significant social problem for these individuals is not properly addressed in our tax system.”
Hurst responded: “I don’t subscribe to the idea that there are social problems as a result of that. I think it’s properly taxed in the system… Our contention is that if you increase additional taxes on the industry even further… it’s going to put jobs at risk, it’s going to put shops at risk, it’s going to put sports sponsorship at risk.”
Committee chair Meg Hillier then checked to see if Hurst had understood her point correctly and asked: “Do you think there are any social ills related to gambling?” The lobbyist replied: “No.”
He later added that the industry is “doing everything we can to reduce the harm that may result from our products.”
The committee has previously heard evidence from a panel of experts who argued that taxes should be increased on the riskiest gambling products, while lower taxes should be imposed on more harmless types of betting, such as gambling on horse racing and bingo.
Stewart Kenny, who co-founded betting company Paddy Power and is now retired, said he regretted “some of what he did” while working in the industry, but resigned from the group’s board in 2016 after 29 years because he did not believe the company was adequately protecting problem gamblers.
“When you open an account to bet on the next general election or Manchester United to win the Premier League…within 24 hours [bookmakers] I’ll send you free spins in the casino, on online slots,” he told the committee. “It’s like going into a bar for your first drink and having a drink and the bartender says: ‘why not have a triple-strength brandy at home?’
“So if we can deter betting companies from dragging people from the least addictive product to the most addictive product, I think that will be the most important thing. [objective].”
Chancellor Rachel Reeves is under huge scrutiny over what measures she will announce in next month’s budget, with many observers expecting a series of tax increases.
Taxing the betting industry has been put forward as an area where the Treasury could generate significant revenue, but the industry opposes these proposals.
Last week Betfred announced it would close all 1,287 high street betting shops if Reeves increased taxes on the gambling industry, while earlier this month the company behind William Hill said it was considering closing up to 200 betting shops if Reeves increased taxes. The industry also argued that higher tax rates would mean reduced revenues from the industry.
Kenny, along with Theo Bertram, director of the Social Market Foundation, and Carsten Jung, interim deputy director for economic policy at the Institute for Public Policy Research, told MPs that the government could “significantly increase taxes on online gambling and raise revenue”.
