Commons Sense

House of Commons · Ministers' Questions

Gambling Industry Reform

Tuesday 15 March 2022 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government keeps gambling duties under regular review since 2014, taxing based on place of consumption.
  • Analysis by NERA and Landman Economics shows online gambling has a net negative impact of 647 million.
  • Minister acknowledges the need to protect vulnerable individuals while considering impacts on the gambling industry.

Topics (select to filter)

Questions & Answers

Q1 Carolyn Harris Lab Neath and Swansea East
Culture, Media & Sport
Context

The MP is concerned about the impact of online gambling on the UK economy, especially given its labour-intensive nature and offshore base to avoid corporation tax.

Question

What assessment has been made of the potential merits for the Exchequer of reforming the gambling industry? Analysis by NERA Economic Consulting and Landman Economics concluded that online gambling's net impact is negative due to costs to Government estimated at £647 million. Will the Government support upcoming reviews and welcome moves to reduce harm?

Answer from Helen Whately

The Government keep gambling duties under regular review. Since 2014, gambling duties have been taxed on a 'place of consumption' basis, so offshore operators pay taxes related to UK gambling. The Government stands ready to take action based on evidence that vulnerable people are being exploited by gambling operators.

Partly answered

Not addressed: The specific ask about supporting upcoming reviews and welcoming moves to reduce harm was not fully addressed.

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Q2 Carolyn Harris Lab Neath and Swansea East
Culture, Media & Sport
Context

The MP cites analysis from NERA Economic Consulting and Landman Economics indicating a negative net impact of online gambling due to its offshore base and avoidance of UK corporation tax.

Question

Analysis by both NERA and Landman Economics concluded that the net impact of online gambling on the British economy is negative, with costs estimated at £647 million. Will the Government support upcoming reviews of gambling regulation?

Answer from Helen Whately

The hon. Lady is a committed campaigner on gambling as chair of the all-party parliamentary group on gambling-related harm. Specific to her point about offshore operators, since 2014, gambling duties have been taxed based on 'place of consumption'. The Government stand ready to take action where there is evidence that vulnerable people are being exploited.

Partly answered

Not addressed: The specific ask about welcoming moves to reduce harm was not fully addressed.

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Q3 Andrew Bridgen Con
Culture, Media & Sport
Context

The MP is concerned that overly strict regulation might drive vulnerable individuals to unregulated black markets, reduce Exchequer revenue, and harm industries like greyhound and horse-racing.

Question

Does the Minister share concerns that over-zealous regulation could lead to damaging unintended consequences such as driving people to unregulated markets, loss of revenue to the Exchequer, and damage to the greyhound and horse-racing industries?

Answer from Helen Whately

My hon. Friend makes an important point about protecting vulnerable individuals from exploitation while acknowledging that there are 100,000 jobs in the gambling industry.

Partly answered

Not addressed: The specific ask was not directly answered; concerns were acknowledged but without a clear stance or commitment.

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