Gambling as a Base for Hypothecated Taxation: The Uk's National Lottery and Electronic Gaming Machines in Australia

Posted: 6 Jul 2004

See all articles by David Pickernell

David Pickernell

University of Glamorgan

Kerry Brown

Queensland University of Technology - School of Management

Andrew C. Worthington

Griffith University

Mary Crawford

Queensland University of Technology

Abstract

Gambling is now a large revenue source for many governments due to its ease of implementation, popular appeal and the high real tax rate it can bear (up to 40%). It is often promoted by spending on 'good causes' designated as 'additional' to existing government activity. This article examines the UK's National Lottery and Electronic Gaming Machines (EGMs) in Queensland, Australia and shows that, in both cases, gambling taxes are often diverted into education, health and social and economic development and therefore potentially substitute for taxation raised elsewhere in the economy. In addition, there is evidence that gambling's taxation implications (against income) are doubly regressive, taking disproportionately from lower income groups and giving to those better off.

Suggested Citation

Pickernell, David and Brown, Kerry and Worthington, Andrew C. and Crawford, Mary, Gambling as a Base for Hypothecated Taxation: The Uk's National Lottery and Electronic Gaming Machines in Australia. Available at SSRN: https://ssrn.com/abstract=548075

David Pickernell (Contact Author)

University of Glamorgan ( email )

Pontypridd CF37 1DL, Wales
United Kingdom

Kerry Brown

Queensland University of Technology - School of Management ( email )

Brisbane, Queensland 4001
Australia

Andrew C. Worthington

Griffith University ( email )

170 Kessels Road
Nathan, Queensland 4111
Australia
+61 (0)7 3735 4273 (Phone)
+61 (0)7 3735 3719 (Fax)

Mary Crawford

Queensland University of Technology ( email )

GPO Box 2434
Brisbane, Queensland 4001
Australia

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