Steep Increases For Online Gambling Tax To Address 'Highest Levels
The Chancellor has actually announced a high increase in online gaming tax related to the "highest levels of harm" throughout the sector.
Rachel Reeves said she was reforming betting taxes in reaction to the rise in online betting, revealing a boost in remote gaming responsibility from 21% to 40% and on online wagering from 15% to 25%.
There are no changes for in-person gambling or horse racing, while bingo task is being eliminated completely from April next year.
Some parts of the gambling 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 video gaming
Dame Meg Hillier, Treasury Select Committee
The Chancellor said: "Remote video gaming is connected with the greatest levels of damage and so I am increasing remote video gaming duty from 21% to 40%, with task 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 eliminating bingo responsibility completely from April 2026. Taken together, my reforms to gambling tax will raise over ₤ 1 billion annually 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 stated: "Massive tax boosts for online betting and video gaming in the Budget make them amongst the greatest worldwide, and are a disastrous hammer blow to tens of countless individuals operating in the market across the UK, and countless clients who delight in a bet.
"Regulated betting and gaming is among the UK's couple of internationally effective sectors, creating ₤ 6.8 billion for the economy, contributing over ₤ 4 billion in tax and supporting 109,000 tasks, while providing essential funding for British sport.
"While we welcome the choice not to raise land-based duties and to scrap bingo responsibility, these excessive online tax increases will undermine tasks, investment and growth throughout the UK.
"The Government's Budget is a huge win for the exceptionally harmful, unsafe, uncontrolled betting black market, which pays no tax and provides none of the defenses that exist in the controlled sector.
"These decisions are bad for jobs, bad for clients, bad for sports and bad for much safer gambling."
Treasury Select Committee chairwoman Dame Meg Hillier stated: "The gaming sector's scaremongering has failed.
"The Chancellor has made the ideal decision in concurring with my committee that the tax rate for remote wagering, including highly addictive casino games, should reflect the harm it causes.
"Some parts of the betting industry, 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 video gaming which can quickly drain the bank balances of vulnerable individuals after simply a few clicks of a button on a phone."