UK Chancellor Increases Gambling Taxes To Raise Over £1 Billion But Racing Exempt
The UK government has announced a raft of changes to gambling taxes in a bid to raise more than £1 billion to boost struggling public finances.
Chancellor of the exchequer, Rachel Reeves, announced the move in Parliament on November 26 in her annual Budget.
Increases to gambling taxes in the UK had been widely expected in the Budget, with former prime minister Gordon Brown having called for the move to raise much-needed funds.
Reeves confirmed the changes to gambling taxes in the UK should bring in an extra £1.1 billion per year by 2029-30, the end of the current parliamentary term.
Many major gambling companies saw their share prices drop sharply in the wake of the Budget, which was leaked an hour early by mistake by the Office for Budget Responsibility.
Highest Levels of Harm
Explaining her Budget decisions, Reeves gave details on why she has changed gambling taxes.
She said:
Remote gaming is associated with the highest levels of harm and so I am increasing remote gaming duty from 21% to 40%, with duty on online betting increasing from 15% to 25%.
I am making no change to the taxes on in-person gambling or horse racing and I am abolishing bingo duty entirely from April 2026.
Taken together, my reforms to gambling tax will raise over £1 billion per year by 2031.
The gambling industry had issued stern warnings against raising taxes, which was described by the Treasury Select Committee chair Dame Meg Hillier as “scaremongering”.
Welcoming Reeves’ increases to gambling taxes, she said:
The Chancellor has made the right decision in agreeing with my committee that the tax rate for remote betting, including highly addictive casino games, should reflect the harm it inflicts.
Bingo duty is set to be abolished by the UK government from April 2026
BGC: Jobs and Growth Undermined
Responding to the Budget, the Betting and Gaming Council (BGC) – a standards body for the industry – claimed the increases to gambling taxes could lead to job cuts.
Chief executive of the BGC, Grainne Hurst, claimed that the UK’s gambling taxes are now some of the highest of any country in the world and will be a “hammer blow” to the sector.
She said:
While we welcome the decision not to raise land-based duties and to scrap bingo duty – these excessive online tax increases will undermine jobs, investment and growth across the UK.
The government’s Budget is a massive win for the incredibly harmful, unsafe, unregulated gambling black market, which pays no tax and offers none of the protections that exist in the regulated sector.
Entain, the owner of Ladbrokes and one of the UK’s largest gambling companies, issued a statement warning tax rises could take as much as £150 million off its underlying profit by 2027.
Rival Evoke, the owner of William Hill and 888, said it expects to be hit with extra duty costs of £135 million. Rank Group says its operating profits are forecast to have a £40 million reduction.
Better News For Racing And Bingo
Reeves confirmed there will be no changes to gambling taxes on horseracing, while bingo duty will be abolished entirely in April 2026.
The chancellor’s decision was welcomed by the British Horseracing Authority’s acting chief executive, Brant Dunshea, who said:
Racing has been part of the British way of life for hundreds of years.
It binds our communities together in shared experience, it brings joy to millions. It puts the country on the world stage. It is right that the government has understood this and acted accordingly.
Bingo halls were previously subject to a 10% taxation rate but this has been eradicated.
Miles Baron, chief executive of the Bingo Association, said:
Abolishing bingo duty is a transformative moment for clubs – and a clear recognition of the community value we provide.
After years of rising costs and economic pressure, the announcement gives clubs the stability and headroom they need to reinvest, modernise and secure thousands of jobs across Britain.
