It has been suggested that the gambling industry could be set to face higher taxes in the government’s upcoming Autumn budget. UK Chancellor Rachel Reeves has said operators must pay their “fair share” to help the country’s public finances.
At the Labour Party Annual Conference in Liverpool Reeves told ITV “there’s a case for gambling firms paying more”. Although no details were disclosed her remarks suggest the Treasury is considering an increase in gambling taxes.
Reeves followed on “On a personal level I’ve never bet in my life. They make an important contribution to the economy, but they should pay their fair share of taxes. We’ll make sure that happens.”
The statement comes as the government looks to reduce borrowing for people to fund their gambling as well as additional spending pledges. The autumn budget is due to be disclosed on the 26th November.
There has been whispers of a tax overhaul in the betting industry for most of 2025. At the start of the tax year the Treasury said they were looking to replace the current three tier system for remote gambling to a single rate. This was suggested to simplify matters and ensure a greater consistency between casino, online betting and gaming operations.
The proposal has faced criticism across the industry and within parliament. Over a 100 Labour MP’s have stressed that the Chancellor should not impose a flat tax rate outlining this would hurt the smaller companies that are responsible gambling operators.
In a letter addressed to Reeves the MP’s argued that she should focus on higher risk activities like slots and casino to target levy. “ A single, undifferentiated tax regime risks removing import fiscal levers”.
As it stands the Remote Gaming Duty is 21% of gross gaming yield but it has been proposed to increase to nearer 50% aligning with the higher rates in parts of Europe and United States.
The Betting and Gaming Council (BGC) which represents UK operators strongly disagrees with the idea of further tax increases. According to chief executive Grainne Hurst “it’s short sighted”, and warned this will push bettors to unregulated sites outside of the UK jurisdiction.
Hurst said she understands the Chancellor’s need for revenue but the gambling industry already contributes to the economy in the way of employment, sponsorship and also taxes. The higher duties alongside the new statutory levy which was introduced in April risk “degrading the regulated offer” and will reduce consumer protection.
In our opinion the stances made by Reeves reflects a tough balance between social protection and fiscal responsibility. There is a strong case for bigger gambling operators to contribute more given the economic cost of gambling harm. A level tax hike across all products could backfire on the Chancellor with the non UK casino black market being the main beneficiary and in turn a loss of tax revenue for the treasury.