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Nick Hawkins
Former UK Shadow Gambling Minister Nick Hawkins sorts the wheat from the chaff in his bi-monthly column…
As I write this, Royal Ascot is in full swing and a new racecourse, Ffos Las near Llanelli, is opening tonight (looks very impressive, with rugby player Jonathan Davies celebrating the stand named in his honour – I hope to see it before too long). Despite recessions, deflation and the credit crunch, the Sport of Kings continues, and happily for us in the industry, despite the gloom and damaging stories of the Daily Mail, plenty of people still want a flutter.
My last column seems to have stirred up some interest; after several others had already mentioned it, a leading industry adviser who I greatly respect happened to meet me by chance at a restaurant in Mayfair, not long after it had been published, and was kind enough to say he agreed with every word of my reflections that the industry spent too much time on factional infighting and as a result had too little influence in Government in the UK.
This is particularly important as we are less than a year away from the next UK General Election, and the recent Euro Election and County Council election results strongly suggest a change of Government is highly likely. My former colleagues will be in power after a 13-year gap.
Even though the reputation of Parliament and MPs is now at an all-time low – not surprisingly with the ongoing expenses scandal – we all have to recognise that there will always be a Government and our industry always has to influence it. It is also essential to recognise the ever-growing influence of European government via the Commission. This can be a distinctly mixed blessing – but if, in the short-term, it is forcing previously protectionist EU states, defending their national monopolies or quasi-monopolies, to open their markets to genuine competition (as seems now to be happening in France) this is welcome and must be taken full advantage of.
At the same time, the European Commission’s recent very thorough report upholding in full the Remote Gambling Association’s criticisms of US policy is very positive indeed. Although nothing is likely to change quickly in terms of US policy, with the Democrats firmly in control, there seems every chance that at some point, perhaps in 2010 or 2011, there may be an important step forward. It is hoped that the US authorities will confirm, as the EC require, that no further US “enforcement action” will be sought against European companies’ trading which was perfectly lawful, and consistent with what the US Government had signed up to, in its commitments under the World Trade Organisation and the GATS agreement. There should at some point also be repeal of parts of the US Unlawful Internet Gaming Enforcement Act, at the instigation of the splendid Congressman Barney Frank.
In the machine industry the long-awaited increase in Stakes and Prizes for Category C machines to £1 / £70 finally came into force, and in the same week, the Government announcement that they are happy with the deal done to avoid the threat of a statutory levy, by voluntary fundraising for Research Education and Treatment, and the restructuring of the fundraising and distribution methods for this, is greatly welcome. I think it is fair to say that the industry welcomed the fact that, in the recent reshuffle, the Gambling Minister, my old cross-party friend Gerry Sutcliffe MP, stayed put – even though the Secretary of State above him changed from Andy Burnham to Ben Bradshaw. The industry will be relieved that they (and DCMS Civil Servants) don’t have to start briefing two entirely new Ministers from scratch!
Finally, however, there is the dreaded threat of a new Gross Profits Tax. The tax authorities may be smarting from their defeat in the Rank VAT case (though there may, of course, be a further appeal). Most of this industry certainly doesn’t want GPT – but HMRC and the Treasury are always tough to fight. This is a very big issue and may run and run!
