Peter Jackson, CEO of Flutter Entertainment Plc has warned the UK government that increasing taxes on online gambling will harm smaller operators and push consumers toward the black market.
In an interview with the Financial Times, Jackson emphasised that higher taxes, which many states are considering, will inevitably lead to rising costs and a growing black market.
Jackson participated in the UK Investment Summit, where he met with key business figures and Chancellor of the Exchequer Rachel Reeves. Reeves hosted the summit to strengthen ties between the Labour government and the business community.
Following the summit, Jackson posted on LinkedIn, stressing that getting regulation and fiscal policy right is crucial for business and economic success. He echoed former Google CEO Eric Schmidt’s call for the UK to streamline regulation and implement it more quickly under Labour.
While Jackson supports the Gambling Act Review, he noted that the industry faced “great uncertainty” due to the three-year delay in implementing the regulation. He added that ongoing collaboration is still needed on several key areas.
“Consistency around fiscal policy is also paramount as it allows businesses like ours to invest with more confidence,” Jackson said. He highlighted the recent speculation around higher taxes in the industry, adding, “It was perhaps timely that I warned of the unintended consequences of high taxes in an interview with the Financial Times.”
Jackson also addressed the potential impact on the UK market. “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.”
He reaffirmed Flutter’s commitment to contributing to the UK’s digital economy, saying, “At Flutter, we stand ready to play our part through our businesses, such as Sky Betting & Gaming in Leeds and tombola in Sunderland. As a leader in the space, we can help drive the UK’s digital economy and lay the foundations for long-term success.”
Jackson’s comments follow bleak predictions from analysts about the potential tax increases in the UK. JPMorgan analysts Estelle Weingrod and Karan Puri criticized the plans, warning that a tax hike could trigger an “exodus of operators” from the UK market, making it less attractive.
The JPMorgan analysts also cautioned that such changes could push players toward the black market, “defeating the purpose of having a regulated market in the first place.”
Weingrod and Puri warned, “More stringent regulation typically benefits larger operators, allowing them to consolidate the industry as smaller operators struggle to adapt and eventually exit the market.”