UK Politicians Calling for Gambling Tax Increase as Chancellor Prepares to Unveil Budget

As Chancellor Rachel Reeves is slowly preparing to unveil her second Budget later this month, the UK gambling sector is facing a lot of pressure. Namely, a large number of PMs is putting on pressure for a sweeping overhaul of taxes for gambling.

Besides PMs, the general public and media outlets are getting invested in the matter as well, urging the Treasury to impose higher tax on the industry’s most harmful products. Online casino games and slots are the first items they are thinking of. Operators, on the other hand, are worried this might trigger a major economic fallout.

MPs Call for a Massive Tax Reform

A new report from the Treasury Select Committee has create a debate by calling for an increase in taxation of gambling. The reasoning – new taxes should better reflects the risk profiles of different gambling activities.

The Committee Chair Dame Meg Hillier criticized the industry for “masking the more damaging sides of online gambling behind the cultural familiarity of traditional betting.” According to her, online games and machine-based products pose bigger risks to individuals and overall communities than lower-intensity gambling forms.

The Committee’s worries are valid. In the past decade alone, online gambling’s share in the UK gambling market went from 12% to 44%, which is a massive increase. This poured lots of funds into the market, helping it reach its £11bn powerhouse status quickly.

Operators Warn of Many Dangers

Industry leaders, however, do not agree with the Committee. They insist that further tax increases could harm both the players and the economy. Betting & Gaming Council (BGC) CEO Grainne Hurst said that boosting tax sharply would push consumers toward unregulated offshore websites. Offshore sites are not known for their safety, so players would be more exposed to danger than they are now.

She added that BGC members already contribute billions in tax revenue, have created than 100,000 jobs and are crucial for funding for major sports.

One of the country’s largest operators, Flutter, echoed the concern. The company stated that proposals for up to a 50% tax rate on online games could put thousands of jobs at risk.

Even the Media Entered The Chat

The debate spilled into the mainstream this week as The Sun launched a public campaign urging Reeves to “Save Our Bets.” The British tabloid warned that an aggressive tax rise, for instance if the tax rates are potentially more than double, could force hundreds of betting shops to close.

This could destabilize the sporting ecosystem which heavily relies on gambling sponsorships.
According to industry figures, bookmakers contribute approximately £350m annually to British horseracing alone. Not only that: millions more flow into football, rugby league and other sports. Bookmakers such as Betfred say that steep tax hikes could make thousands of retail jobs redundant and threaten the survival of its 1,300 shops.

What Comes Next

As the budget announcement is due on November 26, the Treasury is weighing the opposing arguments. On one hand, lawmakers are calling for tougher taxes to decrease harm for the participants. On the other, industry leaders warning of economic damage and the potential growth of the black market.

Reeves have already signaled that she has gambling reform firmly on her agenda. The lengths of her reforms is unknown, but we know for sure that it will have lasting effect on the UK betting landscape.