Lobbying Efforts by UK Gambling Sector to Avoid Tax Rises
The UK’s gambling sector is launching a lobbying campaign to prevent tax rises.
Key Facts:
- Figures from the UK gambling industry have come together to stop tax rises going ahead
- They’re carrying out a lobbying campaign over the summer that includes meeting with politicians
- There are concerns that tax rises could have a serious impact on gambling companies
This summer, various people from the UK gambling industry are participating in a lobbying campaign. This aims to persuade the government not to go ahead with tax rises.
The campaign includes meetings with important politicians and a range of events designed to convince lawmakers that the increases shouldn’t go ahead. If tax rises go ahead, they could significantly impact the industry.
The Tax Plans
The Treasury plans to harmonise the different duty rates applied to gambling companies. This wouldn’t affect all companies, but it would result in rather steep hikes for some.
The Betting & Gaming Council (BGC) represents gambling operators, including owners of websites and brick-and-mortar venues. It’s opposing the tax plans because they could also lead to higher tax rates for digital gaming companies and others.
A Lobbying Campaign Event
The BGC recently partnered with Flutter Entertainment, which owns SkyBet, Paddy Power and Betfair, to co-host an event as part of the lobbying campaign. This event was an evening themed to darts.
More than 100 staffers and special advisers from across the Labour party attended, with the event promoted through the Labour Staff Network. Grainne Hurst, the CEO of BCG, gave a speech.
A spokesperson from Flutter Entertainment said the following about the event:
The Labour staffers event was a great opportunity for us to talk about our ‘Big 180’ partnership with Prostate Cancer UK – built around the World Darts Championship – which has so far encouraged 350,000 men to check out their risk of developing the disease.– Flutter Spokesperson, Flutter Spokesperson Comments on Labour Staffers Event, Yogonet
People from the BCG met with prominent Labour Party members at the event. For example, Michael Dugher, the BCG Chair, spoke with Katie Martin, Rachel Reeves’ Chief of Staff, and has been in touch with Reeves herself.
Criticisms and Responses from the Horse Racing Industry
Anti-gambling campaigners have criticised the lobbying effort. Even some Labour politicians who want increased regulation have opposed it. An example is MP Dawn Butler, who wants councils in deprived areas to have greater powers to stop betting shops opening.
She mentioned that on an average day, nearly one person kills themselves as a result of gambling addiction. She likened this to a public health crisis and believes that planning laws should consider it.
People involved in the horse racing industry have also expressed concerns about the tax harmonisation plans. They’re worried that higher tax rates could make companies’ finances even worse than what they currently are.
There are supposedly some in the horse racing industry who aren’t opposed to online gambling taxes increasing. They’re happy this will go ahead as long as horse racing is spared.
Tax Increase Plans in Detail
The Social Market Foundation has been calculating how much revenue could be generated if gambling tax rates were to be adjusted. An option currently being considered is increasing the online casino games tax from 21% to 35%.
While this seems like quite a steep increase, an even higher tax rate of 41%, almost double the current rate of 21%, was proposed for products deemed most harmful. This 41% rate was eventually rejected.
A spokesperson from the BGC said that meetings with government officials happen frequently and are appropriate. Any donations and hospitality efforts are in line with all the rules, and everything is declared correctly.
In 2024, £15.6 billion was generated from the UK gambling sector. Of this, £11.5 billion was kept by the companies that offer gambling services (both digital and real-world).
In 2025, it’s expected that the gambling industry will contribute roughly £3.6 billion in duties. This figure may rise in the coming years if the tax harmonisation plans advance.
