Economists are predicting an Internet betting boom fuelled by the World Cup. This
follows a massive increase in betting turnover of nearly 70% since the abolition of
deductions on punters' stakes last October. Betting turnover, according to the latest
figures, now stands at an astonishing £1.3 billion a month.
In a report to be published in the June 2002 issue of the Economic Journal, Dr David
Paton and Professor Donald Siegel of Nottingham University Business School and
Professor Leighton Vaughan Williams, Director of the Betting Research Unit at the
Nottingham Trent University, argue that the recent abolition of deductions on punters'
bets, together with developments in Internet betting technology, foreshadow a Golden
Age of betting and gambling in the UK.
The authors write that: ‘The UK government has explicitly decided to base its betting
taxation policy on economic criteria, such as reducing inefficiency and maintaining
competitiveness.’
Professor Vaughan Williams commented:
‘Since the abolition of “tax” on punters' stakes last year, betting turnover has
increased sharply across the whole of the betting industry, up nearly 70% to a
massive £1.3 billion a month. Turnover is likely to rocket again because of the
World Cup. The extra publicity generated for Internet betting on the World Cup,
combined with zero taxes for punters, can only accelerate the pace of change in
an already booming sector of the economy.’
Dr Paton added:
‘The UK is set to establish itself as the key player on the international stage for
betting on sports events. We already see clear evidence of this happening, and
we predict that betting turnover will continue to rocket, particularly on the
Internet.’
Professor Siegel said:
‘There are still a number of challenges ahead, most notably for other gambling
sectors such as the Lottery and casinos. But our evidence suggests that even
these sectors have benefited from the reduction in betting tax. It is clear that the
Government's recent tax changes have laid the foundations for the long-term
viability and competitiveness of the UK gambling industry.’
ENDS
Notes for Editors: ‘A Policy Response to the E-Commerce Revolution: The Case of
Betting Taxation in the UK’ by David Paton, Donald Siegel and Leighton Vaughan
Williams will be published in the June 2002 issue of the Economic Journal.
Dr David Paton is Senior Lecturer in Industrial Economics at the Nottingham University
Business School.
Professor Donald Siegel is Professor of Industrial Economics at the Nottingham
University Business School.
Professor Leighton Vaughan Williams is Professor of Economics and Finance, and
Director of the Betting Research Unit, at the Nottingham Trent University.
For Further Information: contact Leighton Vaughan Williams on 0115-982-6177
(mobile: 07968-582987; email: leighton.vaughan-williams@ntu.ac.uk ); David Paton on
0115-848-6601 (email: david.paton@nottingham.ac.uk); or RES Media Consultant
Romesh Vaitilingam on 0117-983-9770 or 07768-661095 (email:
romesh@compuserve.com).