INDUSTRY SECTOR

GAMBLING

Gambling is often subject to stringent regulatory controls. Specific industry regulations apply to many areas, especially licensing and taxation. Economists can clarify issues and help to resolve disagreements between firms and authorities. Economic analysis can also assist in establishing the appropriate scope of regulatory control and the implications of duties and taxes on gambling activities.

Europe Economics advises on bidding processes for lotteries and other franchises, reviews regulatory and fiscal frameworks for a variety of gambling products, and assists with the preparation and review of demand forecasts and business plans. The firm also helps market participants develop arguments to support changes to existing taxation and regulatory frameworks.

The firm recently assessed the regulation of gambling in different EU Member States, with a particular focus on their implications for the European Single Market. The growth of internet betting and gaming means that regulations in this sector affecting cross-border trade have attracted, and will continue to attract, considerable interest. Hearings at the World Trade Organisation and a number of high-profile rulings in European courts bear this out.

Europe Economics has also produced assessments of a number of current taxation issues.

Europe Economics assisted the UK betting industry throughout its campaign for a reform of General Betting Duty in response to the development of internet and off-shore betting. The Betting Office Licensees Association (BOLA) credited Europe Economics with having played a vital part in BOLA's success convincing the Government to replace betting duty with a gross profits tax in the 2001 Budget. Since then the firm has undertaken further projects in the UK and overseas, including assessments of the likely effects of tax changes.

Europe Economics advised on economic and financial issues throughout the process for selecting the operator of the UK's National Lottery from 2001. This included advice on design of the financial terms to be incorporated in the licence, establishment of an appraisal methodology, and the economic and financial appraisal of business plans submitted by applicants.

Europe Economics has researched (and made public its findings on) Fixed Odds Betting Terminals and problem gambling. The Europe Economics report and the MORI survey data that underpin it can be found on our publications page. A second round of research is currently in progress.

Last year Manchester City Council appointed Europe Economics to advise on the critical success factors that the Government-appointed Independent Advisory Panel might be expected to take into account when it receives bids from local authorities to license the single Regional Casino envisaged by the Gambling Act 2005. A summary of our thinking is contained in a downloadable pamphlet which was first released at a seminar organised by the Social Market Foundation in London on January 19th 2005.