TY - JOUR
T1 - Taxation and the demand for gambling
T2 - New evidence from the United Kingdom
AU - Paton, David
AU - Siegel, Donald S.
AU - Williams, Leighton Vaughan
N1 - Funding Information:
The authors are grateful to the industrial plant managers who made this work possible, and to Jean-Noël Rampon for his active collaboration during the laboratory experiments. The work was financially supported by ADEME and CREED.
PY - 2004/12
Y1 - 2004/12
N2 - In October 2001, the U.K. government implemented a dramatic shift in gambling taxation, resulting in a substantial decline in taxes levied on U.K. bookmakers. Using data before and after this event, we present econometric evidence on the demand response to this tax reduction. Our results imply that the demand for bookmaker gambling is highly sensitive to the rate of taxation and that the decline in the rate of taxation resulted in a large increase in the demand for onshore betting. The U.K. policy initiative provides useful information for policy makers in other countries who are contemplating changes in gambling taxation.
AB - In October 2001, the U.K. government implemented a dramatic shift in gambling taxation, resulting in a substantial decline in taxes levied on U.K. bookmakers. Using data before and after this event, we present econometric evidence on the demand response to this tax reduction. Our results imply that the demand for bookmaker gambling is highly sensitive to the rate of taxation and that the decline in the rate of taxation resulted in a large increase in the demand for onshore betting. The U.K. policy initiative provides useful information for policy makers in other countries who are contemplating changes in gambling taxation.
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U2 - 10.17310/ntj.2004.4.04
DO - 10.17310/ntj.2004.4.04
M3 - Review article
AN - SCOPUS:14544296578
SN - 0028-0283
VL - 57
SP - 847
EP - 861
JO - National Tax Journal
JF - National Tax Journal
IS - 4
ER -