Steep Increases For Online Gambling Tax To Address 'Greatest Levels
The Chancellor has announced a high increase in online gambling tax related to the "greatest levels of damage" across the sector.
Rachel Reeves said she was reforming gaming taxes in reaction to the rise in online betting, revealing a boost in remote video gaming responsibility from 21% to 40% and on online betting from 15% to 25%.
There are no changes for in-person betting or horse racing, while bingo task is being abolished entirely from April next year.
Some parts of the gaming industry, such as racecourses and bingo halls, make a cultural contribution to our nation. This is not the case, though, for online slots and other remote video gaming
Dame Meg Hillier, Treasury Select Committee
The Chancellor stated: "Remote video gaming is associated with the greatest levels of damage therefore I am increasing remote gaming responsibility from 21% to 40%, with responsibility on online betting increasing from 15% to 25%.
"I am making no modification to the taxes on in-person betting or horse racing and I am eliminating bingo responsibility totally from April 2026. Taken together, my reforms to betting tax will raise over ₤ 1 billion each year by 2031."
The reforms are expected to raise an approximated ₤ 1.1 billion for the Government by 2029-30.
Betting and Gaming Council president Grainne Hurst said: "Massive tax boosts for online betting and gaming announced in the Budget make them amongst the highest on the planet, and are a terrible hammer blow to 10s of countless people operating in the industry across the UK, and countless customers who take pleasure in a bet.
"Regulated wagering and gaming is one of the UK's couple of globally successful sectors, creating ₤ 6.8 billion for the economy, contributing over ₤ 4 billion in tax and supporting 109,000 tasks, while delivering crucial funding for British sport.
"While we invite the choice not to raise land-based responsibilities and to ditch bingo duty, these extreme online tax increases will weaken jobs, investment and development throughout the UK.
"The Government's Budget is a massive win for the exceptionally harmful, unsafe, unregulated betting black market, which pays no tax and uses none of the protections that exist in the managed sector.
"These are bad for tasks, bad for clients, bad for sports and bad for safer gambling."
Treasury Select Committee chairwoman Dame Meg Hillier stated: "The betting sector's scaremongering has stopped working.
"The Chancellor has actually made the right decision in agreeing with my committee that the tax rate for remote wagering, including extremely addictive casino video games, need to reflect the damage it causes.
"Some parts of the gaming industry, such as racecourses and bingo halls, make a cultural contribution to our nation.
"This is not the case, though, for online slots and other remote gaming which can quickly drain pipes the bank balances of vulnerable people after just a few clicks of a button on a phone."
