Amidst rumors that the government is planning to tighten restrictions on the
UK gambling industry, the heads of some of the top gambling groups have met with
authorities to try and convince them otherwise.
The executives warned the government that any talk of tax increases and
tougher legislation could have a detrimental affect on the industry and
eventually on the entire UK economy.
The Daily Telegraph reported that in a meeting that took place between the
gambling heads and the UK Minister of Sport, Gerry Sutcliffe, the government
representatives were told that tougher taxes would directly affect the gambling
companies' ability to compete with offshore gambling groups.
In addition, the jobs of thousands of the 60,000 employed by the UK
gambling industry could be on the line should companies be forced to close
their operations, warned Neil Goulden from Gala Coral, William Hill's Ralph
Topping and Chris Bell of Ladbrokes.
"Analysis by London Economics indicates that an increase in gross profits tax
from 15 to 17% would result in the closure of 845 betting shops and result in
the loss of 3 190 full time jobs," they said.
The current recession is already having a very poor effect on around one
quarter of the UK's 8,600 betting shops, it was found.
Taxes paid by the gambling industry already top some of the highest paid in
the United Kingdom. Bookies pay nearly 1 million GBP in direct taxes each year,
over and above the levies they pay to horse racing industries that amount to
over 130 million GBP.
The Chairman of the Association of British Bookmakers said that the tax rate
in the country is simply too high and many shareholders are prompting the heads
of companies to reconsider their location in the UK. "They have got the staff
here, the expertise here and the infrastructure here," said Warwick Bartlett.
"But they may not have a choice."
