Flutter CEO: Higher UK gambling tax rate could end up reducing overall tax revenue
Proposals have been set out which could see a tax raid on the gambling industry of £3bn ($3.92bn).
Key Points:
– Jackson attended the UK Government’s International Investment Summit
– The Flutter CEO hopes regulation changes in the UK are implemented at greater pace under Labour
– Similar to the US, Jackson would not be in favour of too high a tax rate in the UK (predictably)
Flutter Entertainment CEO Peter Jackson has offered his response to the ongoing speculation surrounding a potential £3bn ($3.92bn) tax raid on the gambling industry in the UK.
Reports surfaced over the weekend suggesting proposals surrounding tax raids on the gambling industry were put forward by two influential thinktanks, with UK Chancellor Rachel Reeves looking to plug the £22bn “black hole” she has claimed to have found in the UK’s finances.
Gambling Insider has been told that only those claiming the Treasury is receptive to the proposals are the ones calling for it.
Meanwhile, Betting and Gaming Council (BGC) CEO Grainne Hurst highlighted the potential impact of higher taxes on the growth of the industry as a whole and the risks of the black market, while individual companies suffered declines on the stock market in reaction to the news.
Flutter was one of those companies that felt a hit, with its share price down nearly 5% on Monday morning. The company’s CEO offered his take on the tax raid rumours in a post on LinkedIn today.
He wrote: “With plenty of speculation around the taxation of our sector this week, it was perhaps timely that I warned of the unintended consequences of high taxes in an interview with the Financial Times published today.
“While my comments about balance were in relation to the US, the point can also be applied to the UK operating environment and elsewhere – setting too high a tax rate reduces competition, weakens the consumer offering and can lead to a reduction in tax revenue. This is in no one’s interest.”
Jackson’s response came after attending the UK Government’s International Investment Summit, where he took positivity from the Chancellor’s “desire for a partnership with business and her prioritisation of economic growth.”
From this summit, the Flutter CEO agreed with former Google CEO that “UK regulation must be streamlined and implemented at a greater pace under Labour,” referencing the Gambling Act Review; which in its current implementation the company supports, with pilots currently in operation and implementation of rules set to take place in the next few months.
Jackson spoke exclusively to Gambling Insider and Gaming America at G2E last week, where he explored the current landscape of gaming and what Flutter has planned for 2025, both in the US and beyond.
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