You can almost imagine a Blair-Starmer double act, co-opting a favourite catchphrase and delivering in unison: “And not a lot of people know this.”
The controversial “this” is that the UK Labour Party, no less, has long been a low-key, if not nefarious, supporter of our gambling industry; fuelling charges of corruption and quid-pro-quo graft in the process.
Now–bedevilled by wider allegations of taking dodgy freebies from a broad section of wannabes, hustlers and lobby groups, “Freebiegate”–the newly-ensconced, so-called Socialist administration of Sir Keir Starmer is set to bite the hand that’s been feeding it.
According to highly-placed and reliable media sources, Labour chancellor Rachel Reeves plans to impose additional taxes totalling some £3 billion (US$3.92bn) on the British betting industry in the upcoming October 30 budget as part of her strategy to right a £22 billion (US$28.78bn) shortfall in public finances.
Tumbling Shares
The unwelcome news has had an immediate impact on the share value of two of the nation’s top gambling firms.
Shares in Flutter Entertainment–owners of Betfair, FanDuel, Paddy Power, PokerStars, Sky Betting & Gaming–and Entain–they of Ladbrokes Coral, bwin, PartyPoker and Sportingbet fame–have tumbled by 13 percent and over seven percent, respectively.
Exact details of the putative tax raid are not yet known.
But one proposal, instigated by the Institute for Research on Public Policy, backs a doubling of the general betting duty from 15 percent to 30 percent — and hiking gaming duty on iGaming operators from 21 percent to 50 percent.
If it is imposed the IPPR plan–specifically targeting allegedly high-risk iCasino betting–will raise an estimated £3 billion next year, say gambling industry watchers.
Blair Back
The Labour Party’s hitherto “favourable” relationship with the gambling industry first began under the successive administrations of Tony Blair, 1997-2007.
Blair, who many say is back at the heart of power as the principal mentor of the Centrist Starmer, greenlighted gambling liberalisation during his decade of rule.
Rachel Reeves, for example, has been given West End show tickets from the gambling industry’s representative Betting and Gaming Council, which is currently led by Michael Dugher, a former Labour M.P. and Blairite minister.
Reeves has also accepted £20,000 (US$26,167) from top gambling executives to fund her private office.
Labour Business Secretary Jonathan Reynolds was given a £3,457 ticket (US$4,523) and matchday hospitality from Entain for the England v Denmark European Championship semi-final at Wembley in July 2021.
Freebiegate
Wes Streeting, the current Health Secretary, received a free dinner ticket worth £700 (US$916) from U.K. National Lottery operator Allwyn, owned by the controversial Czech billionaire Karel Komárek — a man who has previously been accused of colluding with Russian dictator Vladimir Putin.
And in 2020 Prime Minister Starmer received a donation of £25,000 (US$32,715) from Peter Coates, one of the Co-founders of bet365.
In all, during the last four-years, the Labour Party has accepted over £1 million (US$1.3m) from key players in the gambling sector.
Despite all the back-scratching, freebies and cash, it would seem that nobody rides for free.
And taxes on gambling are surely set to rise.
