What's happened
The UK government announced significant increases in online gambling duties, raising remote gaming duty from 21% to 40% and online betting from 15% to 25%, aiming to address gambling harms and increase revenue. The reforms exclude horse racing and will generate over £1 billion annually by 2031.
What's behind the headline?
The government's decision to increase online gambling duties reflects a strategic move to curb gambling harms associated with online casino and betting activities, which now account for nearly half of the market. Industry opposition warns that steep tax hikes could push consumers to unregulated black markets, risking increased gambling harms and job losses. The exclusion of horse racing from the new 25% remote betting duty indicates a recognition of its cultural and economic importance, while the abolition of bingo duty aims to support land-based venues. The forecast that operators will pass 90% of the duty increases to consumers suggests higher prices and reduced payouts, potentially impacting vulnerable players. This move aligns with broader efforts to regulate online gambling more tightly, but risks economic repercussions if industry pushback leads to closures or black market growth.
What the papers say
The Mirror reports that the government is increasing remote gaming duty from 21% to 40%, with online betting duty rising from 15% to 25%, aiming to raise over £1 billion annually by 2031. The Independent highlights that the rise is in response to online gambling's growth, which now makes up 46% of the market, driven largely by online casino activity. Both sources note industry warnings about job losses and black market expansion, with industry groups like the Betting and Gaming Council warning that higher taxes could undermine the regulated sector. Sky News adds that the sector's lobbying efforts and potential sale of assets, such as Evoke's Italian arm, are contingent on the government's stance. Overall, the coverage shows a tension between regulatory ambitions and industry concerns, with the government emphasizing harm reduction and revenue, while industry advocates warn of economic fallout.
How we got here
The UK government is reforming gambling taxes amid rising online gambling activity, which has grown substantially over recent years. Industry figures show a sharp increase in online gambling revenue, prompting calls for higher duties to fund public services and address gambling-related harms. The Treasury aims to balance revenue generation with regulation, protecting traditional betting and horse racing while targeting online sectors seen as more harmful.
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