gambling operators must pay “fair share” of tax

UK Chancellor Rachel Reeves has given an indication that taxes on gambling will rise in the next budget, saying the government will “make sure” operators pay their “fair share” of tax.

Reeves made the comments at the Labour Annual Conference after delivering a speech on the penultimate day of the event this weekend. While she did not reference gambling directly during her speech, Reeves hinted in an interview with ITV that gambling tax could be on the rise.

However, she made no indication as to what the increase may look like.

The chancellor is under pressure to raise additional funds to support wider plans, including reducing government borrowing. While she has already implemented some changes, she and the government require more funds, with gambling seemingly sounded out as a target area.

“I do think there’s a case for gambling firms paying more,” Reeves told ITV. “On a personal level, I’ve never bet in my life. They make an important contribution to the economy, but they should pay their fair share of taxes. We’ll make sure that happens.”

An update from the government is expected in the upcoming autumn budget on 26 November.

What could the rejigged gambling tax look like?

Talk of an increase in gambling tax has been rife for most of 2025. In April, the government put forward an initial proposal for a single rate for all remote gambling. This would replace the current, three-banded tax rate system.

However, the proposal has drawn criticism from various quarters. Concerns include the impact of harmonisation on wider issues such as risk and harm and the potential demise of the horse racing sector which relies heavily on the betting sector.

The sector has said increased taxes could hit smaller operators and drive black market activity as consumers seek out cheaper and more innovative options.

Meanwhile, a group of over 100 Labour MPs has also urged against grouping all remote gambling tax under one rate. Writing to the chancellor, the MPs have instead called for a “targeted” levy on online gambling operators active in the UK.

“A single, undifferentiated tax regime risks removing important fiscal levers that currently incentivise lower risk product design and behaviour. It would also weaken the broader public health goal of reducing gambling-related harm; an objective to which this government has rightly committed,” MPs said.

While the MPs said gambling in the UK is “lightly taxed” at 21% of gross gaming yield (GGY), they did not make a suggestion on how much tax should be paid. However, they did make reference to the Social Market Foundation’s (SMF) suggestion.

In July, the SMF proposed raising Remote Gaming Duty from 21% to 50%. This, it said, would bring the UK more in line with other jurisdictions across Europe and the US, where online gambling tax rates reach 50% or more.

Industry bodies hit out at higher tax plans

Unsurprisingly, the industry has not responded kindly to the proposals to increase gambling tax. The Betting and Gaming Council (BGC) slammed the plans put forward by the MPs as “short-sighted”, highlighting the negative impact this could have on the industry.

CEO Grainne Hurst said while she sympathised with Reeves, she cautioned against what she described as a “quick fix” policy in increasing gambling tax. She also said further tax rises risk “degrading” the offer of regulated gambling to a point that customers could turn to the black market.

Increases in tax would be in addition to the new statutory levy, which came into effect on 6 April this year.

Operators currently pay varying tax rates, based on GGY. These depend on the types of gambling offered by an operator and whether they are online or land-based. Levy rates will range from 0.1%, primarily covering land-based activity, up to 1.1% for operations offering online casino.

The Gambling Commission warned operators that do not comply with rules for the statutory levy, including making payments on time, could have their licence revoked.