Several environmental changes in the 1990s–including the introduction of a national lottery,
the rise of Internet gambling, and the reduction of trade barriers within the EU–induced the
UK government to initiate a large‐scale review of betting duty. As a result of this review, the
government recently announced a significant reduction in betting taxes. They also decided
to replace the current general betting duty (GBD), levied as a proportion of betting stakes,
with a gross profits tax (GPT), based on the net revenue of bookmakers. We examine the …

A series of environmental changes in the 1990s, including the introduction of a national
lottery, a reduction of trade barriers within the European Union, and the rise of Internet
gambling, induced the UK government to initiate a large-scale review of the betting duty. As
a result of this review, the UK government recently announced a significant reduction in the
overall level of taxation on betting. It was also announced that the current general betting
duty (GBD), levied as a proportion of betting stakes, will be replaced by a gross profits tax …