Gambling and Lotteries

Lord Sikka Excerpts

Monday 14th December 2020 Lords Chamber

[Baroness Barran (Con)]

The purpose of the review is to keep the balance. Of course we acknowledge that the vast majority of people who go out and place a bet—whether once a week, twice a year, or however often it might be—may get great fun and pleasure from it, and it can be a form of social contact. However, we also know that there are people who pay a great price and suffer as a result. We are seeking to find a balance, so the evidence in relation to mental health in both directions will be taken seriously.

[Lord Sikka (Lab) [V]]

My Lords, gambling companies such as 888, Bet365, Betfair, Flutter, Ladbrokes, Paddy Power, Sky Bet and William Hill have used complex corporate structures in Guernsey, Alderney, Gibraltar, the Isle of Man, Ireland and Bulgaria to avoid UK corporate taxes. Indeed, in 2018, HMRC finally defeated Ladbrokes on its £71 million tax-avoidance scheme. Does the Minister agree that gambling companies avoiding UK corporate taxes should automatically lose their licence to operate here?

[Baroness Barran (Con)]

Companies that avoid taxation illegally, whether they are gambling companies or any other companies, should be held to account for that. However, as the noble Lord is aware, gambling companies contribute about £3 billion to the Exchequer through the levy.