A cross-party group of MPs has urged Chancellor Rachel Reeves to raise taxes on the gambling industry in the forthcoming Budget. The recommendation arrives as the government faces pressure to fund social programmes, with gambling taxation emerging as a significant fiscal opportunity.
The Treasury Select Committee’s statement, published in early November, has urged the government to recognise different types of gambling and adjust taxation accordingly. This position aligns with recommendations from the Institute for Public Policy Research (IPPR) and the Social Market Foundation (SMF), both of which have proposed raising Remote Gaming Duty from its current 21% to 50% for online casinos, increasing Machine Gaming Duty from 20% to 50%, and raising General Betting Duty from 15% to 25%. These organisations estimate such measures could generate between £2 billion and £3.2 billion annually for the Treasury.
One paragraph of the report highlights the rapid growth of online and remote offerings, where the shift to digital platforms has been significant. Modern gambling platforms increasingly offer diverse products ranging from sports betting to casino games and beyond, blending traditional gambling habits with modern technology. Some platforms even accept cryptocurrencies such as Bitcoin (source: https://esportsinsider.com/uk/bitcoin-casinos), opening up for the future’s gambling habits. By adjusting tax policy to evolving market formats, the government could both safeguard existing revenue streams and plan for future growth.
The current tax system on gambling remains inconsistent across formats. General Betting Duty on horse races and football stands at 15 per cent, Machine Gaming Duty (covering high-street slot machines) sits at around 20 per cent for the most popular machines, and Remote Gaming Duty is approximately 21 per cent. Casino Gaming Duty varies between 15 per cent and 50 per cent depending on the venue and stakes. The Treasury Select Committee has recommended that the government maintain differentiated rates rather than merging all these into a flat duty.
From the industry perspective, organisations such as the Betting & Gaming Council highlight that the gambling sector contributes considerable employment, sporting sponsorship and tax revenue already, with estimates of around £4 billion in annual taxes and support for over 100,000 jobs. Industry representatives suggest that tax increases of the scale proposed would lead to significant job losses. The council also argues that the increases could push customers toward unlicensed, unregulated operators, ultimately reducing government tax revenue rather than increasing it.
Supporters of the tax change emphasise that the measure could help fund social policy priorities, including removing the two-child benefit cap. They argue that the financial modelling shows a tax rise in the sector could yield a meaningful contribution toward broader public-spending objectives.
Government officials have indicated that the Budget will include a review of gambling taxation, though details remain under consideration. As Chancellor Reeves has said, operators in the sector “should pay their fair share of taxes” and the Treasury is examining how the regulatory-tax framework might evolve. With the Budget approaching, the sector will be watching closely.
