The Big Four UK Gambling Companies Hold Private Meeting With Treasury Amid Proposed Crackdown on the Industry
Four of the UK’s largest gambling companies, Entain, Flutter, Bet365, and Paddy Power have held a private meeting with UK Treasury officials amid fears the crackdown on the gambling sector could cost the UK treasury millions in lost revenue and taxes.
During an online meeting with Treasury and Revenue customs, the four big operators warned a major overhaul of the gambling industry could drive players to the unlicensed black market, which would prove more dangerous.
Impact of Tougher Restrictions in the UK
The Guardian initially reported on the meeting taking place after a freedom of information request, Bet365, flutter, Entain, and Paddy Power held an online video meeting on October the 7th 2021, warning of the negative impact tough sanctions would have on the betting industry in the UK.
The big four submitted a report through PriceWaterhouseCoopers, who found a significant uptake in the sales in the unlicensed black market. Gambling operators have raised concerns about the negative impact stricter rules could have on the £3.3 billion taxes claimed by the Treasury per year.
The operators said the UK Government should take a more ‘holistic approach’ when considering tax and regulatory change as there was a ‘very real risk, of significant unfavourable effects for the regulated sector.’ The operators involved in the meeting said they would be more than happy to continue discussions with tax officials regarding the suspected changes to the white paper.
The Department for Digital, Culture, Media, and Sport (DCMS) is currently reviewing the Gambling Act 2005, amid concerns many more people are feeling the harm of gambling-related problems.
Director of Clean Up Gambling Matt Zarb-Cousin said, “The industry is trying to water down the proposed reforms in the gambling review by lobbying tax officials under the radar. This is massive propaganda from the industry that has engaged in tax avoidance for years. I hope the Treasury isn’t buying this. There needs to be full transparency over this lobbying campaign.”
BGC Welcomes Review
The representative for the gambling industry The Betting and Gaming Council fully supports a review of the gambling act but warned the right balance must be found in protecting the most vulnerable from gambling-related harm whilst not spoiling the enjoyment of those who gamble responsibly.
The industry as a whole is taking many measures to protect vulnerable gamblers, and this is reflected in the United Kingdom Gambling Commissions figures showing the number of problem gamblers is steadily falling.
