Steep Increases For Online Gambling Tax To Address 'Highest Levels
The Chancellor has announced a steep increase in online betting tax associated with the "highest levels of damage" throughout the sector.
Rachel Reeves stated she was reforming gaming taxes in response to the rise in online gaming, announcing 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 duty is being abolished entirely from April next year.
Some parts of the betting 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
Dame Meg Hillier, Treasury Select Committee
The Chancellor stated: "Remote gaming is associated with the greatest levels of damage and so I am increasing remote video gaming duty from 21% to 40%, with responsibility on online betting increasing from 15% to 25%.
"I am making no change to the taxes on in-person betting or horse racing and I am abolishing bingo task completely from April 2026. Taken together, my reforms to gambling 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 increases for and video gaming revealed in the Budget make them among the greatest worldwide, and are a terrible hammer blow to 10s of thousands of individuals operating in the market across the UK, and millions of customers who take pleasure in a bet.
"Regulated wagering and video gaming is among the UK's few worldwide effective sectors, creating ₤ 6.8 billion for the economy, contributing over ₤ 4 billion in tax and supporting 109,000 tasks, while delivering crucial financing for British sport.
"While we welcome the choice not to raise land-based responsibilities and to scrap bingo task, these extreme online tax boosts will undermine jobs, financial investment and growth across the UK.
"The Government's Budget is an enormous win for the extremely damaging, risky, unregulated gambling black market, which pays no tax and uses none of the defenses that exist in the regulated sector.
"These choices are bad for jobs, bad for consumers, bad for sports and bad for much safer gambling."
Treasury Select Committee chairwoman Dame Meg Hillier said: "The betting sector's scaremongering has actually failed.
"The Chancellor has actually made the best choice in agreeing with my committee that the tax rate for remote betting, including highly addictive casino games, should show the harm it inflicts.
"Some parts of the gaming market, such as racecourses and bingo halls, make a cultural contribution to our nation.
"This is not the case, however, 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."
