Political support growing for UK gambling tax hike

Political support growing for UK gambling tax hike

Summary

Punchy take: Political momentum is building behind a significant rise in gambling taxes ahead of the November Budget — and it could hit the most harmful products hardest.

Deputy Labour leadership hopeful Lucy Powell told The Guardian she backs hiking taxes on gambling companies to help fund the abolition of the two-child benefit cap. Former prime minister Gordon Brown has also publicly supported thinktank proposals that would sharply increase Remote Gaming Duty for high-risk products such as online slots.

Two thinktanks, the Social Markets Foundation (SMF) and the Institute for Public Policy Research (IPPR), have floated differentiated rates — in some cases up to 50% on more harmful products. Sources close to the SMF say the practical outcome being sought is nearer a 30%–35% top rate. Mainstream reporting suggests the Treasury is “near certain” to raise gambling tax rates, with Chancellor Rachel Reeves reviewing options ahead of the autumn Budget.

Outside Labour, the Liberal Democrats passed a conference motion calling for Remote Gaming Duty to rise from 21% to 42%, plus tougher curbs on advertising, marketing and sponsorship. Campaigners for gambling-harms reform have also persuaded figures in racing to back differentiated tax rates — a notable shift away from an industry-friendly consensus.

If implemented, these measures could add up to around £3bn on top of the roughly £2.5bn already paid by UK licensees — a change that would place the UK among the highest gambling-tax jurisdictions and likely have major consequences for the British gaming sector.

Key Points

• Lucy Powell publicly backs raising gambling company taxes to fund the abolition of the two-child benefit cap.
• Gordon Brown has lent weight to thinktank proposals for higher, differentiated Remote Gaming Duty.
• SMF and IPPR proposals contemplate steep rates for higher-risk products; SMF sources expect an effective top rate of about 30%–35%.
• The Treasury is reportedly reviewing gambling taxes and a November Budget increase by Chancellor Rachel Reeves is widely anticipated.
• The Liberal Democrats passed a motion to raise Remote Gaming Duty from 21% to 42% and tighten advertising and sponsorship rules.
• Campaigners have won support from parts of the racing sector for a differentiated approach — signalling broader political consensus.
• Proposed changes could raise roughly £3bn extra and would likely significantly affect the UK gaming industry’s revenues and business models.

Why should I read this?

Short answer: because if you work in iGaming, payments, marketing or policy, this could change your business. Taxes aimed at online slots and other high-harm products would reshape revenue mixes, push product strategy, and force changes to advertising and sponsorship. It’s a fast-moving political story ahead of the Budget — we’ve done the legwork so you don’t have to skim dozens of briefings.

Source

Source: https://next.io/news/regulation/political-support-growing-uk-gambling-tax-hike/