UK Gambling Industry Braces for Potential Levy Hike

UK Prime Minister Keir Starmer and Chancellor Rachel Reeves have begun working on a budget package expected to be announced in November. While the government has pledged itself not to touch income tax, national insurance, or VAT, a rise in gambling taxes appears almost certain to be on the table.

Calls for Increased Taxation Are Gaining Momentum

According to a recent report by The Guardian, the threat of higher gambling taxes is looming over the betting and gaming industry in Britain. Former UK Prime Minister Gordon Brown has been among the most vocal supporters of such a shift, arguing that the sector is under-taxed compared to its profitability.

In a recent address, Brown noted that the United Kingdom’s remote gaming duty stands at 21%, a rate significantly below the average in markets like Austria, the Netherlands, and many US states. He suggests that bumping the rate to 50% could raise an extra GBP 1.6 billion ($2.15 billion) every year. Brown also advocated for increases in betting duty and machine game duty.

Gambling levies aren’t the only source of revenue that could pay to alleviate child poverty. But this should be one straightforward budget choice.

Gordon Brown, former UK Prime Minister

Brown framed the issue in both moral and fiscal terms, suggesting that the extra income could help alleviate child poverty, as well as tackle the social harms associated with problem gambling. His comments and the possibility of an increased levy have caused a stir in the sector, as analysts warn that the impact could be felt long before any official budget statement.

The Industry Braces for a Shock

The reaction in the markets has been swift. Flutter Entertainment, Entain, and Evoke shares fell by over 5% after The Guardian reported the potential levy increase. The Betting and Gaming Council warned that steep tax hikes could jeopardize the regulated market and push customers towards unlicensed providers. However, some industry insiders believe such sharp reactions could be premature.

Optimists note that details remain scarce and that any policy shift would likely follow a consultation period. Gambling company shares have mostly stabilized since the initial report, but have yet to recover. The broader industry remains apprehensive, as an official government announcement could send shares toppling just as industry leaders release their Q2 results.

The sector’s broader concerns align with the British Horseracing Authority (BHA)’s pushback against the proposed hike in remote gambling duty. The organization warns that the planned increase would devastate the industry and decimate jobs across rural and racing-related communities. With more hikes potentially on the horizon, gambling operators remain apprehensive about just how far the government is willing to go.