Steep Increases For Online Gambling Tax To Address 'Highest Levels
The Chancellor has revealed a steep increase in online gaming tax associated with the "greatest levels of harm" across the sector.
Rachel Reeves stated she was reforming gambling taxes in response to the increase in online gaming, announcing an increase in remote video from 21% to 40% and on online wagering from 15% to 25%.
There are no modifications for in-person betting or horse racing, while bingo responsibility is being abolished completely from April next year.
Some parts of the betting industry, such as racecourses and bingo halls, make a cultural contribution to our country. This is not the case, however, for online slots and other remote gaming
Dame Meg Hillier, Treasury Select Committee
The Chancellor said: "Remote video gaming is connected with the greatest levels of damage therefore I am increasing remote video gaming responsibility from 21% to 40%, with task on online betting increasing from 15% to 25%.
"I am making no modification to the taxes on in-person gaming or horse racing and I am abolishing bingo responsibility entirely from April 2026. Taken together, my reforms to betting tax will raise over ₤ 1 billion per year by 2031."
The reforms are anticipated to raise an approximated ₤ 1.1 billion for the Government by 2029-30.
Betting and Gaming Council chief executive Grainne Hurst said: "Massive tax boosts for online wagering and video gaming revealed in the Budget make them amongst the greatest in the world, and are a disastrous hammer blow to 10s of countless individuals operating in the market across the UK, and countless consumers who take pleasure in a bet.
"Regulated betting and video gaming is one of the UK's few internationally successful sectors, producing ₤ 6.8 billion for the economy, contributing over ₤ 4 billion in tax and supporting 109,000 jobs, while providing vital financing for British sport.
"While we welcome the decision not to raise land-based duties and to ditch bingo task, these extreme online tax boosts will undermine jobs, financial investment and growth throughout the UK.
"The Government's Budget is a huge win for the extremely damaging, unsafe, uncontrolled gaming black market, which pays no tax and offers none of the defenses that exist in the controlled sector.
"These decisions are bad for tasks, bad for consumers, bad for sports and bad for more secure gaming."
Treasury Select Committee chairwoman Dame Meg Hillier said: "The betting sector's scaremongering has stopped working.
"The Chancellor has made the best choice in concurring with my committee that the tax rate for remote wagering, consisting of extremely addictive casino games, should reflect the damage it inflicts.
"Some parts of the gambling market, 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 which can quickly drain pipes the bank balances of vulnerable individuals after just a few clicks of a button on a phone."