Business
MPs urge Reeves to tax online betting games to reflect the harm they cause
The government has been told by MPs that it should not “cave in to industry scaremongering” about the negative effects of taxing online betting games, and that it should tax them at a rate that reflects the harm they can cause.
The recommendation from the cross-party Treasury committee comes just weeks ahead of Rachel Reeves’s Budget, in which she will be looking to plug a substantial gap in the public finances.
In its report, released on Friday, the committee warned that online betting can lead to harmful, addictive, high-frequency gambling that delivers no benefit to the people taking part, their families or their communities.
The report urged the government to “more sharply recognise that different types of gambling inflict different levels of harm”, and recommended that this be reflected in its approach to taxing the activity.
The committee’s report said that while various forms of gambling, ranging from seaside arcades and bingo through to betting on the races and football, are safely enjoyed by many people, there is “another side to the industry”.
The shift towards online betting games has picked up pace in recent years, with the proportion of the “gross gambling yield” associated with remote gaming rising from 12 per cent in 2014 to 44 per cent in 2024.
The committee had called for evidence of the possible effects of taxing the activity, as it held a series of sessions examining the choices faced by the chancellor in her forthcoming Budget. It said it rejected the industry’s assertion that gambling causes no social ills. It also heard evidence that it said both supported and challenged the gambling industry’s concern that increased taxation could drive more customers to the black market.
The committee said it recommends that the government examine how to tackle black-market gambling, and consider whether additional anti-tax-avoidance measures were needed.
The chair of the Treasury select committee, Dame Meg Hillier, said: “Whether at a local racetrack or a seaside arcade, for many people, gambling is a fun pastime enjoyed with family and friends. But we heard that the industry is hiding its more insidious parts behind the friendly facade of its traditional, cultural forms.
“For too many people, the highly addictive and harmful nature of online betting games has seriously impacted their lives and the lives of those around them. The impacts of problem gambling in our communities are plain to see, and the industry’s boldfaced claim to our inquiry that it does no social harm is staggering.
“Online betting games are extracting huge amounts of money from people who have been funnelled into the most addictive, harmful corners of the industry via their love of sports or the occasional game of bingo. We are urging the government not to cave in to industry scaremongering, and to tax online betting games at a rate that reflects the level of harm they inflict.”
The chief executive of the Betting and Gaming Council (BGC), Grainne Hurst, said: “Further tax increases on the regulated online sector risk undermining consumer protections by pushing players towards the unsafe, unregulated black market – while reducing Treasury revenues and cutting the vital funding our members provide to British sport, including horseracing, football, rugby league, darts and snooker.
“We have always recognised that betting and gaming can lead to harm for a small minority, which is why our members are investing more than ever in safer gambling – including new stake limits on online gaming, enhanced affordability checks, swift data-driven interventions, robust advertising safeguards, and funding for a new £100m statutory levy for research, prevention, and treatment to tackle problem gambling and related harm.”
Ms Hurst added: “BGC members contribute £6.8bn to the economy, generate £4bn in tax, and support 109,000 jobs, while facing an effective tax rate of up to 80 percent when duties are combined with corporation tax, business rates, national insurance, VAT, and the new statutory and economic crime levies.
“Much is at stake in the chancellor’s Budget. Get it wrong, and it’s not just jobs and growth that will suffer, it’s safer gambling itself. To protect consumers and support a safer, stronger industry, we must keep gamblers playing within the regulated market.”
A spokesperson for Flutter UK and Ireland, whose brands include Paddy Power, Sky Betting & Gaming, Sportsbet and Tombola, said: “It’s not scaremongering to suggest that tax rates of 50 per cent on machine games and online games such as bingo – as demanded by the Institute for Public Policy Research – could have a significant impact on the industry, jobs and investment.
“A tax rise is not a free hit.”
McDonald’s Meal Deal photographed in Washington, D.C., on Aug. 26, 2024.
Scott Suchman | The Washington Post | Getty Images
McDonald’s leadership is urging operators to stay the course on value offerings as the competition for consumers plays out across the restaurant space.
In a memo to U.S. operators following the company’s third-quarter earnings, McDonald’s U.S. President Joe Erlinger said the brand was “moving in the right direction” as it continues a more-than-yearlong push on value.
“Amid industry pressures, dynamic change, and aggressive competition, winning the fight for contracting traffic means staying customer-obsessed,” Erlinger wrote in the memo, which was viewed by CNBC. The company did not immediately respond to request for comment.
On Wednesday, McDonald’s reported earnings per share and revenue that came in below Wall Street expectations, but its same-store sales were a bright spot, posting positive growth across all segments.
U.S. same-store sales increased more than anticipated, up 2.4%, thanks to a boost from the $2.99 Snack Wrap launch and the introduction of its Extra Value Meals, which Erlinger said drew week-to-week growth.
“While we maintained a positive comp guest count gap, overall [guest counts] continue to decline– underscoring the need for disciplined pricing, value, and affordability,” he wrote in the memo.
Erlinger said the company has “the right plan in place” and said it was poised for a strong fourth quarter, including the benefit of annual comparisons to last year’s E. coli outbreak that dented burger sales.
“We still need to keep our foot on the gas– staying focused on the customer and what we can control,” he said.
CEO Chris Kempczinski told analysts this week that the fast-food chain is seeing signs of a bifurcated consumer base among quick-service restaurants.
He noted “QSR traffic from lower-income consumers declining nearly double-digits in the third quarter, a trend that’s persisted for nearly two years.
“In contrast, QSR traffic growth among higher-income consumers remains strong, increasing nearly double-digits in the quarter. We continue to remain cautious about the health of the consumer in the U.S. and our top international markets, and believe the pressures will continue well into 2026,” he said.
In a separate memo to global operators, Kempczinski said the brand will continue to focus on “sharpening value leadership to meet evolving consumer expectations and increase traffic.”
He added McDonald’s will be “investing in high-potential menu categories– especially Chicken and Beverages– to stay competitive and drive growth.”
McDonald’s is currently testing beverages in 500 restaurants across Wisconsin and Colorado that draw on learnings from its now-shuttered beverage concept, CosMc’s.
Business
Pine Labs IPO Day 1 LIVE Updates: Issue Receives 0.13x Subscription, Retail Quota Booked Over 50%
Pine Labs IPO GMP Today, Price, Allotment & Listing Date: Fintech firm Pine Labs on Friday launched its initial public offering (IPO) to raise Rs 3,899.91 crore. The IPO, whose price has been fixed at Rs 210-221 apiece, will be closed on Tuesday, November 11. The company raised Rs 1,754 crore from anchor investors on Thursday, a day before the IPO.
The anchor book saw participation from 71 funds, including Franklin Templeton, Nomura, Morgan Stanley Asia Singapore Pte Ltd, Amundi Funds New Silk Road, Massachusetts Institute of Technology, BNP Paribas and Eastspring Investments, according to a circular uploaded on BSE’s website.
Pine Labs IPO GMP Today
According to market observers, unlisted shares of Pine Labs are currently trading at Rs 233 apiece in the grey market, which is a 5.43% premium (or GMP) at Rs 12 over the upper IPO price of Rs 221, indicating mild listing gains for investors.
The GMP was nearly 16% last week.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Pine Labs IPO: Should You Apply?
Brokerages have given a mixed response to the Pine Labs IPO, with views split between long-term optimism and near-term caution. While some see strong potential in its business model, others find the valuation steep given its loss-making status.
Cautious Voices
Arihant Capital advised investors to avoid the issue, citing losses at the PAT level and high employee and technology costs. Swastika Investmart also suggested avoiding the IPO for now, calling it “aggressively valued” with limited short-term visibility. Angel One rated it neutral, noting that the company remains loss-making and trades at a premium to peers on an EV/EBITDA basis, while warning of risks like regulatory uncertainty and intense competition.
Long-Term Optimism
On the other hand, SBI Securities gave a ‘subscribe for long-term’ rating, citing Pine Labs’ strong network of 9.8 lakh merchants and Rs 276 trillion market opportunity by FY29. It said the firm is well placed to deliver profitable growth. IDBI Capital also recommended ‘subscribe for long-term’, highlighting Pine Labs’ Rs 11,424.97 billion transaction volume in FY25 and its strategic acquisitions that strengthen its digital infrastructure ecosystem.
Pine Labs IPO: Opening, Closing, Allotment, Listing Dates
The IPO was opened on November 7 and will be closed on November 11. Its allotment will be finalised on November 12, while the stock listing is scheduled to take place on November 14 on both BSE and NSE.
Mumbai: The domestic equity indices ended the session slightly lower on Friday, erasing early losses due to buying in banking and fin services sectors’ heavyweights in afternoon trade and support from certain positive Q2 results.
Sensex closed at 83,216.28, down 94.73 points or 0.11 per cent. The 30-share index opened marginally lower at 83,150.15 against last session’s closing of 83,311.01. The index remained volatile during the session, hitting an intraday high and low of 83,390.11 and 82,670.95, respectively, amid a mixed approach from investors.
Nifty 50 ended the session on 25,492.30, down 17 points or 0.07 per cent.
“Domestic equities rebounded from early losses as buying emerged at key support levels, though it may be premature to call this a trend reversal amid mixed earnings, cautious global cues, and persistent FII outflows,” said analysts.
Select segments found support from Q2 results, with broader indices outperforming, led by a sharp rally in financials — especially PSU banks on account of rising investor interest driven by speculation around an FDI cap hike and sector consolidation. Going forward, markets will closely monitor US shutdown and tariff-related developments with US-India and US-China deals to assess the durability of the current momentum, he added.
Bharti Airtel, Tech Mahindra, Trent, HCL Tech, Hindustan Unilever, ITC, SBI, TCS, Ultratech Cement and Tata Motors Passenger Vehicle settled in negative territory. Tata Steel, Mahindra and Mahindra, ICICI Bank, BEL, Adani Ports, Infosys and PowerGrid closed higher.
Sectoral indices remained volatile, experiencing a mixed approach from investors. Nifty FMCG fell 274 points or 0.49 per cent, and Nifty IT declined 220 points or 0.62 per cent. Meanwhile, Nifty Auto rose 153 points or 0.57 per cent, Nifty Bank increased 322 points or 0.56 per cent, and Nifty Fin Services ended the session 205 points or 0.76 per cent higher.
The broader market followed suit as well. Nifty smallcap 100 dipped 29 points or 0.16 per cent, and Nifty 100 settled flat, and Nifty midcap 100 surged 374 points or 0.63 per cent.
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