More Than Half of UK Residents Support iGaming Tax Hike, Survey

Ahead of the release of the UK government’s Autumn Budget, a newly released study suggests more than half of the Brits support the idea of increasing taxes for online gambling.

Three Quarters Support Raising Gambling Taxes

Recently, the Labour Party in the country encountered a £22 billion ($28.7 billion) “black hole.” In an effort to remediate the situation, lawmakers reportedly looked into a tax hike for gambling companies that is expected to generate some £3 billion ($3.92 billion).

Per one of the two proposals under consideration by the Labour Party is the increase of taxes applicable to online gambling from the current rate of 21% to 42%. This move alone is expected to bring an extra £900 million ($1.1 billion) to the Treasury’s coffers, while at the same time addressing the growing concerns of harm related to online gambling activities.

On Tuesday, the Social Market Foundation (SMF) released a new report on the matter, compiled by Dr James Noyes, senior fellow at the SMF, along with Dr Aveek Bhattacharya, research director at the SMF. Interestingly, when Brits were asked “Which of the following taxes should the government prioritize raising,” the top choice was the duty on gambling firms, followed by the tax on tobacco and alcohol.

An overwhelming majority of 74% of the respondents approved of the raising of taxes on gambling, while the duty on tobacco received approval from 72%. Some 58% agreed that the government should prioritize raising taxes on alcohol.

Half of the Brits Support Increases in Online Gambling Taxes

Focusing on online gambling alone, more than half or 52% of the Brits supported the idea of raising taxes for such activities. In contrast, only 11% were in favor of decreasing online gambling taxes, while 19% were against raising iGaming taxes. The remaining 18% answered that they do not know whether the government should or should not raise online gambling taxes.

The scrutiny on online gambling comes at a time when the activity is associated with a higher risk of gambling harm. This is because certain gambling activities online are tied to increased levels of harm, making them dangerous especially to vulnerable groups.

“New polling commissioned for this report shows that over half of Britons (52%) believe the government should increase tax on online gambling,“

reads the new study released by SMF

The newly released report claims that the online gambling sector in the UK is undertaxed. Currently, the gambling industry in the country isn’t subject to VAT. At the same time, the tax rate for iGaming activities is relatively lower when compared to jurisdictions across Europe where a levy of approximately 40% is applicable. Across the ocean, in some US states, the tax applicable for online gambling is more than 50%.