UK Gambling Sector Faces Potential Tax Increase Amid Budget Preparations
Government Considers Raising Gambling Taxes in Upcoming Budget
UK Prime Minister Keir Starmer and Chancellor Rachel Reeves are preparing a budget package to be unveiled this coming November. While the government has committed to keeping income tax, national insurance, and VAT rates unchanged, there is growing indication that gambling taxes may be increased as part of the fiscal plan.
Growing Support for Higher Gambling Levies
Recent reports suggest that the UK betting and gaming sector might face higher levies soon. Former Prime Minister Gordon Brown has been a prominent advocate for raising gambling taxes, arguing that the industry currently pays taxes that are low compared to its earnings.
Brown highlighted that the UK’s remote gaming duty is fixed at 21%, which is notably less than rates imposed in countries such as Austria, the Netherlands, and several US states. He proposed raising this rate to 50%, estimating that such an increase could generate an additional GBP 1.6 billion ($2.15 billion) annually. In addition to the remote gaming duty, Brown also called for hikes in betting duty and machine game duty.
Increased gambling levies are not the sole solution for tackling child poverty, but adopting this measure would be a clear and direct budget decision.
— Gordon Brown, former UK Prime Minister
Brown presented the matter from both ethical and financial perspectives, suggesting that the additional revenue could help alleviate child poverty and address social issues linked to problem gambling. His statements, along with the possibility of heightened levies, have stirred concern within the gambling industry, with experts cautioning that effects might materialize prior to any formal budget announcement.
Industry Responds to Potential Tax Changes
The market reaction to the news has been immediate. Shares of major companies like Flutter Entertainment, Entain, and Evoke experienced drops of over 5% following reports of a possible levy increase. The Betting and Gaming Council warned that steep tax hikes risk undermining the regulated market and driving players toward unregulated operators. Nonetheless, some insiders believe the initial market responses may be premature.
Supporters of a cautious outlook note that the government has yet to provide detailed plans and that any changes would almost certainly involve a formal consultation period. While gambling stocks have largely stabilized since the initial announcements, they have not fully rebounded. The industry remains tense, especially as an official government statement could coincide with the release of key corporate earnings for the second quarter.
These concerns resonate strongly with the British Horseracing Authority (BHA), which has voiced strong opposition to the proposed rise in remote gaming duty. The BHA warns that the planned increase could have devastating consequences for the industry and would threaten employment in rural areas closely tied to horse racing. With further tax hikes potentially forthcoming, gambling operators continue to watch government moves with considerable apprehension.
