UK Gambling Industry Relieved as Autumn Budget Freezes Tax Increases
The UK’s gambling sector received a significant reprieve in Chancellor Rachel Reeves’s autumn budget, which avoided proposed tax increases. Despite raising taxes elsewhere to stabilize the economy, the Labour government chose to leave gambling taxes unchanged.
No New Taxes for Gambling Sector
The autumn budget, the first substantial financial plan from the Labour government in nearly 15 years, introduced a broad tax increase aimed at addressing a £22 billion ($28.3 billion) deficit.
Notably, however, the gambling industry escaped further tax hikes. This exemption comes as a relief to industry leaders, who consider tax stability essential during ongoing regulatory changes.
Opposition voices, including former Prime Minister Rishi Sunak, criticized Labour’s approach, claiming it “fiddled the figures” and veered from promised reforms.
Stability for Gross Gaming Yield and Remote Gambling Duty
Under the budget, gross gaming yield (GGY) tax bands will remain fixed from April 1, 2025, to March 30, 2026, despite prior expectations of increases.
Speculation had circulated about a rise in remote gambling duty (RGD) from the current 21% to as much as 50%, following recommendations from groups such as the Institute for Public Policy Research (IPPR).
Commenting on potential economic strain, Betting and Gaming Council (BGC) CEO Grainne Hurst noted, “Our industry is at a crossroads as we seek to implement the measures contained in the White Paper, measures that will cost our sector over £1bn ($1.3 billion).”
Additional Financial Obligations on the Horizon
While immediate tax increases have been avoided, the gambling industry faces a new annual levy of £100 million ($128.7 million) to fund research and treatment related to problem gambling.
This levy, combined with unchanged duties, presents a balancing act for operators striving to maintain financial stability.
Tax Reform Scheduled for 2025
Despite relief from this budget, the government intends to revisit gambling tax reforms in 2025. The UK’s current tax structure applies a 15% duty on general betting receipts and a 21% rate on remote gambling, with a proposed consolidation of remote gambling under one tax structure.
Alun Bowden, senior vice president at Eilers & Krejcik Gaming, expressed an expectation that a moderate tax increase may be forthcoming, especially within sports betting, which remains comparatively lower-taxed than in other European countries.
Industry Response to Budget
Following the announcement, the BGC voiced its relief over the government’s decision to refrain from further tax hikes. Hurst commented, “Government has listened to the BGC and our members, got the balance right and rejected calls from anti-gambling prohibitionists seeking to threaten jobs and growth.”
For now, the budget offers a momentary reprieve, but with further changes anticipated, the gambling sector remains vigilant about future reforms.
