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Gambling as a base for hypothecated taxation: The UK's National Lottery and and electronic gaming machines in Australia

Pickernell, David and Brown, Kerry A. and Worthington, Andrew C. and Crawford, Mary C. (2004) Gambling as a base for hypothecated taxation: The UK's National Lottery and and electronic gaming machines in Australia. Public Money and Management 24(3):pp. 167-174.

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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 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.

Item Type:Journal Article
Status:Published
Keywords:Gambling; taxation; public policy, poker machines
Subjects:340000 Economics > 340200 Applied Economics > 340209 Public Sector Economics
340000 Economics
360000 Policy and Political Science > 360200 Policy and Administration > 360201 Public Policy
340000 Economics > 340400 Econometrics > 340404 Cross-Sectional Analysis
ID Code:2321
Deposited By:Worthington, Andrew
Deposited On:08 November 2005
Alternative Locations:http://dx.doi.org/10.1111/j.1467-9302.2004.00414.x
Copyright Owner:Copyright 2004 Blackwell Publishing
Copyright Statement:The definitive version is available at www.blackwell-synergy.com