BETTING TAX

Southland Times, Issue 18963, 9 June 1923, Page 5

BETTING TAX

COMMITTEE INVESTIGATES ASTONISHMENT AT VOLUME OF GAMBLING DIFFICULTY OF DEVISING SCHEME. (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) LONDON, June 7. Complete astonishment at the extraordinary amount of betting was the predominant impression among members of the House of Commons Select Committee on betting after a visit to the Derby, where they were the guests of the Jockey Club. They confessed they had previously no idea of the scale of operations, and regretted it is impossible to devise a scheme whereby the amount of money which changed hands on the course could be calculated. More than one member was convinced on a big day like the Derby it would be impossible to collect the tax on the course, and that means would have to be devised to collect through some other channel. Members conscientiously investigated ail aspects of betting, cross-questioned bookmakers and interviewed winning jockeys. Apparently the majority did not attempt to gain firsthand knowledge, though one confessed he left a “tenner” behind. COMMITTEE HEARS EVIDENCE. SUGGESTED YEARLY REVENUE OF £10,000,000. SCHEME OUTLINED. LONDON, June 7. The Betting Tax Committee took evidence. Sir Horace Hamilton,. elaborating his scheme, said the Board of Customs suggested a percentage, say 10 per cent., should be levied on all money staked with bookmakers in addition to issuing book-makers’ betting-office licenses. The Board did not propose Government totalisators. Private totalisators would be treated as betting offices, while street betting would remain illegal. Means would be provided whereby within limitations cash betting off the course would be recognised, controlled and taxed. He believed the present volume of betting totalled over £100,000,000 annually or forty-five shillings per capita of the population. He estimated the total investments on the course during the 1920 Derby at £1,000,000. The totals at the Grand National, Manchester Cup and Kempton Park had several times approached £750,000. Ten per cent, of the total betting investments would yield £10,000,000 yearly. Replying to the chairman, Sir H. Hamilton said a large staff would not be necessary to collect license fees and stamp duties. He thought the bookmakers would pass the tax on by shortening the odds which would affect everybody alike. Bookmakers would not object to ten per cent, on all money staked.

Mr Rentoul, M.P.: Have you ever considered the possibility of taxing betting news in newspapers? Sir H. Hamilton: No. Mr Rentoul: Would the tax be remitted on a scratched horse?

Sir H. Hamilton: The Board feels the intention is the same whether the horse is scratched or not.

Sir H. Hamilton said he thought the cost of collection would not exceed 14 per cent. Replying to a question whether he suggested the repeal of the law so as to make bets recoverable in law courts, he said it was not for them to consider that. He declared that credit betting was not illegal, but was not enforceable in the courts.