Calls for Tax Hikes Raise Concerns in UK Gambling Industry

Proposed Tax Increases

According to a recent report from The Guardian, Chancellor of the Exchequer Rachel Reeves is considering recommendations from two think tanks that suggest increasing taxes on gambling.

The Institute for Public Policy Research (IPPR) has proposed raising the remote gaming duty from 21% to 50%, which could generate up to £2.9 billion annually and potentially rise to £3.4 billion by 2030.

Industry Impact and Concerns

Grainne Hurst has emphasized the significant negative consequences such a tax hike could have.

She warned, “Any further tax rises now will not only slam the brakes on growth for our sector, but it will threaten jobs and completely derail horse racing.”

The sector is already adjusting to the new costs brought by measures in the recently introduced White Paper, which are expected to exceed £1 billion.

Additionally, the new levy on research, prevention, and treatment for problem gambling will raise £100 million annually from bookmakers.

Hurst also expressed concern that additional taxes could push consumers toward the black market, where operators lack the regulatory protections found in the licensed industry.

“Any new taxes now risks giving a leg-up to the lurking menace of the black market, which is hoovering up disaffected customers with eye-catching offers but none of the protections that are in place in the regulated market,” she added.

A Call for Stability

The BGC is urging the government to consider the broader economic and social impact of these proposals.

Hurst stressed the need for regulatory stability, not further changes, as the industry continues to navigate existing challenges.

“We need stability to deliver sustainable investment, not further change which threatens to undo that contribution,” she stated.