Flutter CEO fears for the future of the UK gambling sector
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25 Oct 2024 •
Reading time: 3 minutes A dark cloud is looming over the UK gambling industry, with rumours circulating that the government may be looking to increase taxes on gambling companies. Peter Jackson, the CEO of Flutter Entertainment, is concerned about this and believes that this plan will only bring misery to the entire sector.
Peter Jackson raises the alarm on tax rumours
Peter Jackson, the CEO of Flutter Entertainment, is clearly not sitting still in the wake of rumours about a possible tax increase for gambling companies in the UK. In discussions about the reforms within the gambling sector, Jackson has made it clear that he does not think this is a good idea at all. He is convinced that such a tax increase could seriously damage the market.
The idea that higher taxes would put pressure on gambling companies is not only a concern for Jackson. Many within the industry fear that this move will put businesses and jobs at risk. Jackson points out that raising taxes is often counterproductive.
“The more you tax, the more you discourage businesses. Nobody benefits from it.”
Peter Jackson
Jackson says faster regulation is needed
In addition to his concerns about the tax plans, Jackson has also been vocal about the slow pace of gambling regulation in the UK. In a post on LinkedIn, he shared his experience at the UK government’s International Investment Summit, where he expressed his admiration for Rachel Reeves, the chancellor of the exchequer, who said that economic growth should be the priority. That is exactly what Jackson is advocating: less uncertainty for businesses, more growth.
He stressed that Flutter, one of the fastest growing companies in the UK, has enjoyed great success thanks to clear rules and a stable tax environment. But he also fully agreed with Eric Schmidt, the former CEO of Google. Schmidt said that the government should speed up the process of introducing new gambling regulations. According to Jackson, slow implementation of these regulations will only create more uncertainty, something that will affect the entire gambling industry.
High taxes are more damaging than you think
The tax increase that the UK government is reportedly considering is making many people nervous. According to reports, the government is considering higher taxes for gambling companies, just like in other countries such as the Netherlands. But Jackson does not see a future in that. He cites the Laffer curve, a theory that states that both a 0% and 100% tax do not yield anything for the government. According to Jackson, you can cross a line where the tax becomes so high that companies pull out, with the result that the government actually receives less tax.
“Too high taxes inhibit competition, make the offer for the consumer worse and ultimately result in less tax revenue. Nobody wins anything from this.”
He calls on the British government to consider this carefully before taking such steps. According to Jackson, healthy competition and a good consumer offer are essential to keep the market alive. Too high taxes would only achieve the opposite.
Flutter wants to continue to strengthen the digital economy of the UK
Jackson ended his message on a positive note. He made it clear that Flutter wants to continue to commit to the digital economy of the United Kingdom. Through their leadership in the gambling world, they aim to continue to contribute to innovation and growth in the country. But, Jackson warns, this can only happen if regulations and tax policies allow companies to continue to invest and innovate.