TAXATION OF BETTING.

Press, Volume LIX, Issue 17756, 7 May 1923, Page 10

TAXATION OF BETTING.

PROPOSAL IN ENGLAND.

EVIDENCE .TO BE TAKEN.

(BY CABLE—PRESS ASSOCIATION—COPSMOHT.) (AUSTRALIAN AND N.Z. CABLE AfiSOCIATIOW.)

LONDON, May 4

In the House of Commons, in Committee on the betting tax proposal, it was decided first to hear tne evidence of the Home Office regarding betting laws, and then that of police heads regarding the extent ana kinds of betting; also to obtain evidence from the Board of Customs regarding the practicability of a betting duty, and from representatives of the foreign countries and the Dominions where such duty is already imposed. Finally the evidence will be taken of bookmakers and those opposed to the tax on moral grounds or on grounds of policy. The Treasury has reported that a betting tax is practicable, and could bo collected with very little addition to the present taxation machinery, says the lobby correspondent of "The Times."

According to the London "Daily Mail," the Treasury proposed that bookmakers should be licensed, and that books of tickets should be issued to them for (varying convenient amounts, for which they would pay the amount of tax on the tickets to be is* sued to backers. No bet would be legal unless made by ticket.

The project Tor a tax on bets as a means of increasing the revenue is re. ceivjng wide support, said the "Morning Post" recently, and it is generally agreed that what can be achieved in some of the Dominions and in France should certainly be attempted in this country. In this conenxion it is interesting to note that in the evidence before the Select Coniim->,t,e& at ihe House of Lords on betting in 1902 it was stated that by means of the pari-mutuel system, the deduction of three per cent, for public purposes mad© by the French Government from the money invested in the Pari Mutuel had during the ten years ending 1902 averaged approximately half a million sterling. This amount increased yearlv, and m 1909 amounted to over £13,000,000.

A Large Revenue Assured. It is evident that the members of the Select Committee in 1902 fully alive ta tbe possibilities of bet taxaation. Lord Newton suggested the introduction uf the pari-mutuel system into England. He pointed out that it was obvious that if thii system were introduced in this country concurrently with the licensing or taxation of bookmakers, a large revenue wPuld be obtained by Government, and he added that a revenue, obtained in that manner would not only be a very legitimate form of taxation, but it could bo utilised with advantage for the purpose of encouraging horsebreeding. The insertion of clauses to this effect in the report, however, were negatived by the Committee, who, while admitting that the sy>iem worked satisfactorily in France, in India, and Australia, feared that the evil of adopting the system would by its encouragement of the gambling instinct, far outweigh any gain that might accrue. The Committee had before ihem the Bubject of the licensing of bookmakers, and were of opinion that if it were introduced here it might possibly diminish street betting, and also do much to check fraud and dishonesty. They stated, however, that the duty of licensing if undertaken by the State would mean the legal recognition of the bopkmaker, and necessitate the making of betting dUbts r©coiverable_by law. While the Committee admitted that it was impossible to suppress betting, "after mature consideration" they did not think it wqs desirable to legalise betting in that manner.

One scheme outlined in the "Morning Post" provided for:—l. Licensing of bookmakers and starting-price offices; 2. Issue of revenue stamps; 3. Control of bookmakers on the racecourse ; 4. Standardised rules for' betting and taxation; and 5. Two and a halp per cent, deduction from stake money.

The scheme is developed as follows: In the first place a licensing board should be set up to deal with the issuing of permits to bookmakers and starting-price offices, under specified conditions.The sum to be £IOO per annum. Stamps to be issued by the Post Office. Betting to be done by fullworded telegrams with no codification names of horseß and amount to be stat'ed. A revenue stamp to the value of 3} per cent, of tbe total investment to be fixed and paid for by the sender. Minimum stamp to be 3d. 'Phone betting to be permitted, but no legal liability on either side. Books to be open to inspection at any time by Inland Revenue officials, -who may surcharge the office, where they think there has been avoidance of revenue charges. All accounts sent out for £>. P. offices to have a 2J per cent, stamp affixed, and the amount deducted by the office. If the client has lost then stamps to *be affixed to the losing account to the value of 2£ per cent, of the amount won by the office The Clerk of the Course to so© that all bookmakers have a license, and revenue to the value of 2j per cent, on the total daily winnings to be paid by the bookmaker and affixed before leaving the course. No bookmaker to he admitted to a course unless his book has been stamped and cancelled for the previous meeting. Special licenses to be applied for larsre meetings like Epsom or extra meetings at the rate of £lO per meeting with two guarantors.

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