UK: taxes should be increased on online gambling, while sparing other areas of the industry which are viewed as less harmful
The UK government has formally confirmed its support for tax hikes on the online gambling sector, as previously set out in Chancellor Rachel Reeves’ Autumn Budget.
In a statement issued today, the government sided with the Treasury Committee’s view that taxes should be increased on online gambling, while sparing other areas of the industry which are viewed as less harmful.
The changes will see remote gaming duty (charged on operations including online casinos) increase from 21% to 40% from 1 April this year, while the tax rate for remote sports betting will jump from 15% to 25% from 1 April 2027.
Betting on horse racing and in-person gambling will be spared any tax increases, with their rates to remain the same, while bingo duty will be abolished in April this year.
Dame Meg Hillier, Chair of the Treasury Committee, said: “The decision by the Chancellor to use her Budget to increase taxes on online gambling is a victory for common sense.
“The Chancellor has made the right decision in agreeing with my Committee that the tax rate for remote betting, including highly addictive casino games, should reflect the harm it inflicts.”
The government said the changes are expected to generate more than £1bn in additional tax revenue, despite evidence from other countries such as the Netherlands which show a decrease in overall tax receipts following the introduction of higher rates on online gambling.
‘No social ills’ argument rejected
In its statement, the government added that its support for the committee’s view “comes after the committee rejected testimony from the industry that this type of betting causes no social ills.”
The comment likely comes in response to arguments made to the committee in October by Betting and Gaming Council (BGC) CEO Grainne Hurst, who repeatedly denied that gambling creates “social harm”.
In official communications, the BGC usually focuses on the increased harms associated with the black market and the protection of gambling-related jobs in Britain when lobbying for more favourable regulation.
While Hurst admitted some individuals do suffer harm through gambling, Dame Hillier said she was “flabbergasted” by the comments, which attracted criticism from politicians, media and industry figures alike.
“While I accept parts of the gambling industry make an economic and cultural contribution to the UK, I am frankly flabbergasted that representatives from the betting sector could not accept that certain forms of gambling, such as highly addictive online casino games, cause social harm for some people. I don’t believe that is a defensible position,” Hillier said in response to Hurst’s comments last year.
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