London, July 29, 2025 – UK Chancellor Rachel Reeves is under mounting pressure from MPs and policy groups to raise taxes on the £15 billion gambling industry, as the Treasury looks to overhaul how bookmakers are taxed amid a sharp rise in online gambling.
A recent government consultation, which closed on Monday, proposes merging three existing tax categories into a single remote gambling duty. The Treasury says the aim is to simplify the current system and reflect the shift away from traditional betting shops toward digital gambling platforms.
While Treasury officials emphasize that the move is not aimed at increasing tax rates, members of Parliament from across the political spectrum argue that it is an opportunity to raise additional funds and curb gambling-related harm.
💬 MPs Call for Harm-Based Taxation
Labour MPs Beccy Cooper, Polly Billington, and Alex Ballinger, members of the All-Party Parliamentary Group for Gambling Reform, have called for a progressive tax model that links rates to the social damage caused by different types of gambling.
“There is broad consensus that where there is evidence of gambling harm, disenfranchising those products is a good thing for the government to do,” said Cooper.
Ballinger added that, in the context of a tight public budget, increased gambling taxes could help fund key priorities like child poverty reduction and the NHS.
💷 £2–3 Billion in Potential Revenue
The cross-party think tank Social Market Foundation (SMF) estimates that raising duties on remote gaming and general betting could generate an extra £2 billion in tax revenue annually. Former Prime Minister Gordon Brown has also backed higher gambling duties, saying a “gambling or banking levy could generate more than £3 billion.”
An SMF report by former Labour adviser James Noyes argues against merging duties, instead advocating for a tiered system where more harmful forms of gambling face higher taxes—similar to international models.
The think tank proposes:
- Raising remote gaming duty from 21% to 50%
- Raising general betting duty from 15% to 25%
- Reducing horserace betting duty from 15% to 5%
⚖️ Industry Pushback
The Betting and Gaming Council has opposed any increase in gambling duties. Grainne Hurst, a spokesperson for the group, warned that higher taxes could jeopardize industry contributions to the economy, sport, and employment.
“Regulated betting and gaming is popular, safe, and one of Britain’s few global business success stories,” Hurst said. The industry currently supports over 100,000 jobs in the UK.
According to the Gambling Commission, UK gambling firms generated £15.6 billion in revenue (after customer payouts) in the year to March 2024.
🌍 Offshore Operations Raise Concerns
Many UK-based gambling companies operate partially from offshore tax jurisdictions, allowing them to avoid UK corporation tax. The SMF argues this is another reason why remote gambling duties should not only be differentiated, but also increased, to offset lost tax revenue.
🚨 Autumn Budget Looms
The pressure on Reeves is intensifying ahead of the Autumn Budget, with a reported £20 billion deficit created in part by recent welfare policy reversals. Critics see gambling taxes as a potential lifeline to fund key social programs without directly increasing personal or corporate taxes.
Despite political momentum, the Treasury maintains that the current review is purely about reducing bureaucracy and insists that no decisions on rate changes have been made.