Former Paddy Power Boss Calls For Gambling Tax Hikes To Deter

The former boss of Paddy Power has required greater gaming taxes to hinder bookies from techniques that draw punters into more addicting games, as he said profits across the sector were "blowing up".


Stewart Kenny, who co-founded the betting firm however has actually ended up being a critic of the industry's strategies since retiring, also implicated firms of "scaremongering" over warnings about gambling tax hikes.


Mr Kenny informed MPs on the Treasury Committee: "I truly believe that, for the parts of the market that are the many harm, that you tax higher to disincentivise the bookmakers from drawing you from the sports book into the online gambling establishment."


I do not see any reason that betting stores or individuals used in betting stores must decrease since of the tax rises


Stewart Kenny, Paddy Power co-founder


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


This was a larger issue for younger individuals whose lives might be "ruined" by problem gaming, he stated.


Mr Kenny also rejected claims from betting firms that higher taxation would impact jobs in the sector and drive more individuals towards black market wagering.


"It is scaremongering," he informed the MPs.


"I was using precisely the very same arguments 25 years ago ... and wagering organizations have blown up in revenues.


"I do not see any factor why betting stores or individuals used in betting shops should decrease since of the tax rises," he stated, including that he does not anticipate punters getting a "bad offer" as an outcome.


Parent company Flutter, which also owns Betfair and Sky Bet, told Paddy Power personnel earlier this month it was shutting 57 of their wagering shops in the UK and Ireland, putting practically 250 employees at threat.


Stewart Kenny rejected 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 difficult market conditions".


A spokesman for the UK and Ireland also cautioned that a "greater betting tax might have a considerable influence on jobs and financial investment across the industry and drive more customers into open arms of unlicensed operators on the unlawful, black market".


William Hill owner Evoke also recently said it was considering "additional shop closures" if it is hit by tax boosts in the UK.


On Monday, research study commissioned by the Betting and Gaming Council discovered 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 almost a decade earlier, said there are still parts of the gaming market that he thinks can "grow".


"I became part of the system, I have huge remorses, however I'm still a believer in the gaming market being part of the mix," he stated.


He stated disincentivising business to entice punters towards "highly addictive" online casinos might help them "return to marketing horse racing and wagering on regular events".


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


During the committee session he stated: "Don't let the gambling industry 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."