Stewart Kenny, who started and used to run Paddy Power, thinks gambling companies should pay more taxes. He believes this would stop them from pushing harmful betting practices.
Ex-Paddy Power Boss Admits Regret, Pushes for Tougher Taxes on Gambling Industry
Kenny spoke to MPs on the Treasury Committee this week. He told them bookies now try to get customers to play more addictive online casino games instead of sports betting. They do this by offering things like free spins. Kenny said these tricks can hurt young people’s lives if they get hooked on gambling, reported The Independent.
Kenny, who led Paddy Power from 1988 to 2002 and left its board in 2016, expressed remorse for his part in online gambling’s expansion, calling it one of his major career missteps. While he still saw betting as a valid entertainment option, he felt the industry had become too fixated on profiting from addiction instead of enjoyment.
He called on the government to raise taxes on casino-style games and online slots, arguing that money pressure was the only way to steer companies back to traditional betting markets like horse races and sports events.
Kenny Calls Job Loss Claims ‘Scare Tactics’ Amid Tax Debate
Kenny brushed off industry claims that higher taxes would kill jobs or boost illegal betting. He called these arguments the same scare tactics he once used when he worked for bookies in Ireland. He noted that when Ireland doubled its betting tax in 2019, money from the sector almost doubled from EUR 52 million ($60.5 million) to EUR 95 million ($110.5 million). He noted that profits have gone through the roof for decades and added that small tax hikes would not lead to job cuts.
His words come as people wonder if Chancellor Rachel Reeves might go after gambling companies in next month’s Budget. The Institute for Public Policy Research thinks that changes to gambling taxes could bring in up to GBP 3.2 billion ($4.2 billion) and help 500,000 kids escape poverty.
The Betting and Gaming Council, which speaks for big players like Flutter Entertainment and Evoke, says higher taxes might shut down shops and put up to 40,000 jobs at risk. Flutter, which owns Paddy Power, just said it plans to shut 57 shops in the UK and Ireland, blaming higher costs and tough times. Some industry big shots, like Betfred founder Fred Done, go even further. They claim new taxes could wipe out all their shops. However, Kenny told MPs that shops were already closing for business reasons, not because of taxes.