A POLICY RESPONSE TO THE E-COMMERCE REVOLUTION: THE CASE OF BETTING TAXATION IN THE UK

Several environmental changes in the 1990s - including the introduction of a national lottery, the rise of Internet gambling, and the reduction of trade barriers within the EU - induced the UK government to initiate a large-scale review of betting duty. As a result of this review, the government rec...

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Bibliographic Details
Published in:The Economic journal (London) 2002-06, Vol.112 (480), p.F296-F314
Main Authors: Paton, David, Siegel, Donald S., Vaughan Williams, Leighton
Format: Article
Language:English
Subjects:
Ad valorem taxes
Betting
Case studies
Casinos
Commodities
Economics
Electronic commerce
Fiscal policy
Gambling
Government policy
Internet
Lotteries
New technology
Online gambling
Policy Feature
Studies
Tax policy
Tax revenues
Taxation
Taxation economics
Taxes
United Kingdom
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Summary:Several environmental changes in the 1990s - including the introduction of a national lottery, the rise of Internet gambling, and the reduction of trade barriers within the EU - induced the UK government to initiate a large-scale review of betting duty. As a result of this review, the government recently announced a significant reduction in betting taxes. They also decided to replace the current general betting duty (GBD), levied as a proportion of betting stakes, with a gross profits tax (GPT), based on the net revenue of bookmakers. We examine the economic rationale behind these decisions and demonstrate how these tax changes have broad implications regarding optimal levels of taxation for other sources of government revenue.
ISSN:0013-0133
1468-0297
DOI:10.1111/1468-0297.00045