Taxation and the Demand for Gambling: New Evidence from the United Kingdom
David Paton (),
Donald Siegel () and
Leighton Vaughan Williams ()
Rensselaer Working Papers in Economics from Rensselaer Polytechnic Institute, Department of Economics
In 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.
New Economics Papers: this item is included in nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Journal Article: Taxation and the Demand for Gambling: New Evidence From the United Kingdom (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rpi:rpiwpe:0306
Access Statistics for this paper
More papers in Rensselaer Working Papers in Economics from Rensselaer Polytechnic Institute, Department of Economics Contact information at EDIRC.
Series data maintained by Shawn Kantor (). This e-mail address is bad, please contact .