In the News Teaching Activity – the online gambling industry’s impact on the economy (Sept 2024)

Should the online gambling industry be taxed more heavily?

A report from the Campaign for Fairer Gambling claims the UK's online gambling industry is hurting the economy, diverting money from sectors that generate more jobs and value. It estimates £1.3bn in lost economic activity annually. Critics are pushing for higher taxes on online gambling, arguing it is undertaxed, while the industry warns that tighter controls could push gamblers toward unregulated markets. Some say gambling should be taxed like cigarettes to reduce harm and boost revenues.

Online gambling industry has negative impact on UK economy, says thinktank | Gambling | The Guardian

1 What are the external costs of gambling?

2 Using an MSB/MSC diagram, show how there is likely to be overconsumption of online gambling if there are no interventions in the market.

3 How might the introduction of greater taxation on online gambling increase social welfare?