EconPapers    
Economics at your fingertips  
 

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

Abstract: 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
Date: 2003-10
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)
http://www.economics.rpi.edu/workingpapers/rpi0306.pdf (application/pdf)

Related works:
Journal Article: Taxation and the Demand for Gambling: New Evidence From the United Kingdom (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

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 .

 
Page updated 2017-11-17
Handle: RePEc:rpi:rpiwpe:0306