The British Labour Party are considering implementing a multimillion-pound tax levy on all sports gambling, with the revenue raised to fund treating gambling addiction, and grassroots sports.
The proposal was set out by the Shadow Culture Secretary, Harriet Harman, and the Shadow Sports Minister, Clive Efford, in a new “More Sports for All” document, which is to be unveiled on Thursday.
Mr Efford said: “We are consulting on whether we should introduce a levy on betting, including online betting, to fund gambling awareness and support for problem gambling but also to improve community sports facilities and clubs.”
Currently, only gambling in horseracing is subject to a levy. Indeed, £82m in 2014 was returned to fund grassroots aspects of the industry.
Shadow Culture Secretary, Harriet Harman wants to implement a multimillion-pound tax levy on all sports gambling.
“It’s my preference that the income from the levy went into a general pool to help grassroots sport and from which the respective sports would draw their future elite sportsmen and women,” Mr Efford said.
“Football gambling online and in betting shops is now far larger than horseracing gambling and yet it does nothing to help the sport itself. I think they have a moral obligation to help the industry from which they make billions, and the results could be dramatic.”
However, the betting industry argues that since it pays tax on its profits, there is no need to contribute more to the public purse.
Sport governing bodies argue that their tournaments are intellectual properties and that gambling firms should pay for the right to take bets on such events.
According to the Gambling Commission, after winnings were paid in 2012-2013, the gambling industry in Britain had revenues of more than £6 billion. However, the amount of tax paid on this is complicated by so much of the industry operating offshore.
Mr Efford argued it would be able to levy football betting conducted overseas since a 15% levy on horseracing bets has recently been extended to operations not based in Britain.
He said: “The Premier League also needs to be forced to return to its previous obligation to ensure that a 5% voluntary levy of its income from domestic TV rights are ploughed back into grassroots sport.”
Commenting on the Labour proposals, a Conservative spokesman said: “This is yet another short-term gimmick from Labour. It is a tax on football fans which will mean higher ticket prices for ordinary people wanting to watch our national sport.”
The Labour document also makes a series of calls for more to be done to increase participation in sport, especially in schools.
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