In your own example, your winner paid 10p extra on the bet to avoid £10 on the winnings. The fact that the tax was paid to the government is neither here nor there. The punter paid 10p.

Not really, Don. I probably didn't explain it too well. The punter did actualy won £110 and only received £100 of it. The extra £10 went in tax to the government. Regardless of who actualy did the paying the punter got less than the full amount in the long run. If he had NOT have won the 10p would have still gone to the government. Anyhow - all academic anyway as there is currently no tax on gambling!

Cheers

DeG