Taxation and the demand for gambling: New evidence from the United Kingdom

David Paton, Donald S. Siegel, Leighton Vaughan Williams

Research output: Contribution to journalReview articlepeer-review

22 Scopus citations


In October 2001, the U.K. government implemented a dramatic shift in gambling taxation, 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 imply that the demand for bookmaker gambling is highly sensitive to the rate of taxation and that the decline in the rate of taxation resulted in a large increase in the demand for onshore betting. The U.K. policy initiative provides useful information for policy makers in other countries who are contemplating changes in gambling taxation.

Original languageEnglish (US)
Pages (from-to)847-861
Number of pages15
JournalNational Tax Journal
Issue number4
StatePublished - Dec 2004
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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