by Anton Johan
In a study that was published by the Institute of Economic Affairs in its journal, Economic Affairs, it was shown that the UK is missing out on billions of pounds of investment through its "irrational gambling laws".
The report shows that if strict gambling laws were relaxed somewhat, less pubs would close and more small businesses would thrive.
The report noted that the strict gambling laws are not effective in reducing the problem of addiction, and therefore this should not be a deciding factor when considering easing these laws.
The study contends that legislators are intent on over-regulating because they believe that gambling is harmful, and they are blinded to the advantages that easing up on the laws could bring for the economy.
The Institute of Economic Affairs pointed to examples of other countries such as Australia and regions like Macau, who are both enjoying financial rewards by relaxing their gambling laws.
"Britain is losing out," said the Director of the IEA, Mark Littlewood. "The benefits being reaped by other countries are clear to see, yet the stigma and myths that surround gambling in this country prevent us from relaxing our laws to maximize economic gain."
He argued that the amount of freedom afforded to gambling was "nowhere near enough" in the UK and said that the country desperately needs to encourage economic growth.
"Liberalising our gambling laws would be a simple way to help achieve it," he said.
By removing the caps on total prize pools, the government can ensure that pubs will be able to diversify their offerings and compete with casinos.
The IEA said that it was difficult to ascertain whether there was any benefit to gain by restricting players to wager a GBP 5 stake over a 24 hour period in pubs.
"People should be free to do with their own money as they wish," said Chris Brady, the Dean of BPP Business School and the editor of the latest edition of Economic Affairs. "It's time for the state to take a giant step back."
