Former Paddy Power Boss Calls For Gambling Tax Hikes To Deter

The former manager of Paddy Power has required greater gambling taxes to hinder bookies from techniques that draw punters into more addictive video games, as he said profits throughout the sector were "blowing up".


Stewart Kenny, who co-founded the wagering firm but has ended up being a critic of the market's tactics since retiring, also implicated firms of "scaremongering" over cautions about betting tax hikes.


Mr Kenny informed MPs on the Treasury Committee: "I actually think that, for the parts of the industry that are one of the most harm, that you tax higher to disincentivise the bookies from drawing you from the sports book into the online casino."


I do not see any reason wagering stores or individuals used in betting shops should decrease due to the fact that of the tax rises


Stewart Kenny, Paddy Power co-founder


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


This was a larger issue for younger individuals whose lives could be "damaged" by problem gaming, he said.


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


"It is scaremongering," he informed the MPs.


"I was utilizing exactly the same arguments 25 years ago ... and betting businesses have actually blown up in profits.


"I do not see any reason that wagering shops or people utilized in betting shops ought to decrease since of the tax increases," he said, including that he does not anticipate punters getting a "bad offer" 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 betting stores in the UK and Ireland, putting nearly 250 employees at danger.


Stewart Kenny declined claims from gambling firms that tax increases would result in task losses in the sector (House of Commons/UK Parliament/PA)


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


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


William Hill owner Evoke also recently stated 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 hikes risk 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 decade earlier, said there are still parts of the betting industry that he thinks can "grow".


"I belonged to the system, I have huge remorses, however I'm still a believer in the gaming market becoming part of the home entertainment mix," he stated.


He stated disincentivising business to entice punters towards "highly addicting" online casinos might assist them "get back to marketing horse racing and banking on normal occasions".


Theo Bertram, director of the Social Market Foundation, which argues the betting market ought to be taxed more, informed MPs activities such as horseracing should be secured.


During the committee session he stated: "Don't let the betting market pretend to you that resting on your phone, being addicted to that app and losing thousands of pounds is somehow putting more individuals in your constituency into work."