Taxation and the Demand for Gambling: New Evidence from the United Kingdom
AbstractIn October 2001, the U.K. government implemented a dramatic shift in the taxation of gambling, 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 suggest that the demand for bookmaker gambling is highly sensitive to taxation rates and that the decline in the rate of taxation led to a large increase in the demand for on-shore betting. We also find some evidence of price-induced substitution across different segments of the gambling industry. The U.K. policy initiative may provide useful information for policy makers in other countries who are contemplating changes in gambling taxation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Rensselaer Polytechnic Institute, Department of Economics in its series Rensselaer Working Papers in Economics with number 0306.
Date of creation: Oct 2003
Date of revision:
Other versions of this item:
- Paton, David & Siegel, Donald S. & Williams, Leighton Vaughan, 2004. "Taxation and the Demand for Gambling: New Evidence from the United Kingdom," National Tax Journal, National Tax Association, vol. 57(4), pages 847-61, December .
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Forrest, David & Gulley, O. David & Simmons, Robert, 2000. "Elasticity of Demand for UK National Lottery Tickets," National Tax Journal, National Tax Association, vol. 53(n. 4), pages 853-64, December .
- Gary C. Anders & Donald Siegel & Munther Yacoub, 1998. "Does Indian Casino Gambling Reduce State Revenues? Evidence From Arizona," Contemporary Economic Policy, Western Economic Association International, vol. 16(3), pages 347-355, 07.
- David Forrest & O. David Gulley & Robert Simmons, 2000. "Testing for rational expectations in the UK National Lottery," Applied Economics, Taylor and Francis Journals, vol. 32(3), pages 315-326.
- David Paton & Donald S. Siegel & Leighton Vaughan Williams, 2002. "A Policy Response To The E--Commerce Revolution: The Case Of Betting Taxation In The UK," Economic Journal, Royal Economic Society, vol. 112(480), pages F296-F314, June.
- David Paton & Donald S. Siegel & Leighton Vaughan Williams, 2001. "Gambling Taxation: A Comment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(4), pages 437-440.
- Maschke, Mario & Schmidt, Ulrich, 2010.
"Das Wettmonopol in Deutschland: Status Quo und Reformansätze,"
Open Access Publications from Kiel Institute for the World Economy
32848, Kiel Institute for the World Economy (IfW).
- Maschke, Mario & Schmidt, Ulrich, 2010. "Das Wettmonopol in Deutschland: Status Quo und Reformansätze," Kiel Policy Brief 18, Kiel Institute for the World Economy (IfW).
- Hasret Benar & Glenn Jenkins, 2008.
"The economics of casino taxation,"
Taylor and Francis Journals, vol. 40(1), pages 63-73.
- Hasret Benar & Glenn Jenkins, 2006.
"Regulation and Taxation of Casinos under State-Monopoly, Private Monopoly and Casino Association Regimes,"
1088, Queen's University, Department of Economics.
- Hasret Benar & Glenn P. Jenkins, 2006. "Regulation and Taxation of Casinos under State-Monopoly, Private Monopoly and Casino Association Regimes," Working Papers 1056, Queen's University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Heim).
If references are entirely missing, you can add them using this form.