Peter Jackson, chief executive officer of Flutter Entertainment, commented on the UK’s ongoing gambling reforms amid talks about tax hikes. Echoing his recent point about the US market, he suggested that high tax rates tend to have adverse effects.
Labour Should Speed Up the Regulatory Process
In a post on LinkedIn, Jackson said that was glad to be able to participate in the UK Government’s International Investment Summit. The CEO praised Chancellor Racher Reeves for her desire to prioritize economic growth in the country.
The Flutter executive used the opportunity to talk about how his company sees the market. As one of the fastest-growing public companies in the United Kingdom, the operator has been undergoing a period of particular success. Jackson attributed this to the UK’s cautious approach to gaming regulation and sound fiscal policy.
Flutter’s CEO said that he agreed with former Google CEO Eric Schmidt’s comments about the UK’s regulatory regime. Schmidt, for context, had suggested that the Labour government should speed up the regulatory process and implement the white paper changes faster. Jackson acknowledged that many of the changes require ongoing collaboration between the regulators and the industry but noted that this process has dragged on for too long, causing “great uncertainty” for the betting and gaming industries.
High Taxes Are in No One’s Interest
Jackson also addressed the recent gambling tax hike talks, saying that fiscal policy consistency is very important to a healthy market. For context, a recent report suggested that the government might consider implementing a higher gambling tax, following the steps of other markets, such as the Netherlands.
While many doubt that a gambling tax hike would actually happen, the rumors have caused concern among industry stakeholders. The Betting and Gaming Council, for example, slammed the proposal as something that has been prompted by anti-gambling activists and based on fantasy economics.
Jackson, on the other hand, reiterated what he said in a recent interview with the Financial Times where he spoke about taxes in the United States. In that interview, he referred to the Laffer curve, a theoretical principle that states that 0% and 100% tax would both yield $0 in tax revenue. The curve suggests that high taxes disincentivize businesses and can be very harmful.
While my comments about balance were in relation to the US, the point can also be applied to the UK operating environment and elsewhere – setting too high a tax rate reduces competition, weakens the consumer offering, and can lead to a reduction in tax revenue. This is in no one’s interest.
Peter Jackson, CEO, Flutter Entertainment
Jackson concluded that Flutter hopes to leverage its leadership position to continue to drive the UK’s digital economy and lay the foundation for long-term success.
