Flutter Entertainment CEO, Peter Jackson, has warned increasing tax may well have a damming impact on the fate of smaller operators and the growth of the black market.
Speaking to the Financial Times, Jackson emphasised that the heightening of taxes, which have been touted by a myriad of states, will see a rise in costs and the inevitable expansion of the black market.
Jackson was also part of the UK Investment Summit, which hosted some of the key figures from business alongside Chancellor of the Exchequer, Rachel Reeves, who is working to strengthen ties between the Labour government and business.
Off the back of the Summit, Jackson took to Linkedin to state that getting regulation and fiscal policy right are essential to achieving business and economic success. He agreed with former Google CEO Eric Schmidt that ‘UK regulation must be streamlined and implemented at a greater pace under Labour’.
Jackson remains supportive of the implementation of the Gambling Act Review, however, sharing that the regulation ‘requires ongoing collaboration on a number of key areas, but the fact that it was complicated by three years of delay caused great uncertainty for the UK’s sports betting and gaming industry’.
The CEO added: “Consistency around fiscal policy is also paramount as it allows businesses like ours to invest with more confidence. 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.
“At Flutter, we stand ready to play our part through our brilliant businesses, such as Sky Betting & Gaming in Leeds and tombola in Sunderland. As a leader in the space, we can help drive the UK’s digital economy and lay the foundations for long-term success, aligning with the Chancellor’s quest for growth.”
The comments from the Flutter CEO come after bleak predictions from analysts over the potential impact of the touted tax rises in the UK market.
Specifically, JPMorgan analysts Estelle Weingrod and Karan Puri both discredited the effectiveness of the plans. A tax hike may well lead to an “exodus of operators” from the subsequently “unattractive” UK market, they assert.They also warned of the new framework driving players to the black market, “defeating the purpose of having a regulated market in the first place”.
They added that it is “also worth noting that generally, more stringent regulation typically offers the opportunity for scale operators to consolidate the industry further as small/sub-scale operators struggle to mitigate the adverse impact as effectively, eventually exiting the market”.
New York State’s Responsible Play Partnership (RPP) has announced additional collaborative measures to help prevent problem gambling in the US state.
The RPP is a shared initiative between the New York State Gaming Commission, the New York State Office of Addiction Services and Supports (OASAS) and the New York Council on Problem Gambling (NYCPG) to help address problem gambling, as well as ensure all gaming entities are compliant with rules and regulations and offer help to individuals who need it.
Further measures being implemented by the RPP include “providing prompt support to gamblers who find themselves in crisis, ensuring that gaming industry workers are properly trained to identify and interact with potential problem gamblers and collecting specific data from mobile sports wagering operators to better research its impact on New Yorkers”.
Discussions for the additional measures took place at the del Lago Resort & Casino in Waterloo earlier this week, bringing further support and services to the Finger Lakes and Central New York regions.
“The RPP was formed to bridge the gaps between all stakeholders to address problem gambling,” commented Robert Williams, Executive Director of the New York State Gaming Commission.
“These latest spans bring timely help to those who need it, ensure that industry employees know how to address the issue, and ensure that we are obtaining meaningful data to properly scope mobile sports wagering’s reach.”
From 12 November, New York’s voluntary self-exclusion service will include an option for individuals to opt-in to being contacted in a timely manner by a trained gambling harms staff from the OASAS HOPEline.
In addition, the NYCPG has updated its problem gambling training for gaming employees in the state. This training will help them spot the signs and symptoms of problem gambling behaviour, know how to interact with individuals who may be struggling, as well as provide employees with an overview of applicable statutes and regulations and OASAS research findings.
“New York State has instituted protections to guard against problem gambling, as well as help individuals affected find the help they need,” said Dr. Chinazo Cunningham, Commissioner for OASAS.
“We will continue to work with our colleagues in the Responsible Play Partnership to expand and enhance these supports, improve training on how to promote responsible gambling, and ensure that all New Yorkers can access help and support.”
The Gaming Commission has also proposed regulations requiring sports betting operators to report specific data to the Commission every year after spotting inconsistencies in previously reported data.
“The Commission and OASAS are required to report annually on ‘the impact of mobile sports wagering on problem gamblers in New York, including, to the extent practicable, an analysis of demographics which are disproportionately impacted by the problem gambling”, the Commission’s statement read.
“The Commission and OASAS found in the 2022 and 2023 reports that several mobile sports wagering operators have not consistently maintained such information in a manner to appropriately gauge which populations are participating in mobile sports wagering and how they wager.”
The proposed regulations state that the specific reported data includes:
Each account’s sports betting skin must also provide to the Commission:
Lance Young, General Manager and EVP of del Lago Resort & Casino, added: “del Lago staff is dedicated to delivering world-class hospitality, and ensuring our guests have access to responsible gaming resources is a pillar of that.
“Across our entertainment facilities, our team strives to provide the level of personal service that allows them to recognise the signs of problem behaviour and connect guests with the resources that can help. We thank our state and local partners for their work with us to promote responsible play and provide support for those who need it.”
