UK Chancellor Rachel Reeves is under increasing political pressure, as members of the Northern Ireland Assembly have joined a growing chorus of voices opposing the government’s proposed harmonization of gambling taxes. The Assembly’s All-Party Group (APG) on Reducing Harm Related to Gambling has publicly urged Reeves to reconsider the proposed unified Remote Betting and Gaming Duty (RGBD) and instead advocate for a higher tax rate for online gambling activities.
Currently, the UK Treasury is contemplating the consolidation of all remote gambling taxes into a single duty rate, aligned with the existing 21% Remote Gaming Duty. Proponents of this plan argue it would streamline the system and ensure equitable treatment among various betting and gaming operators. However, opponents, including the APG, Labour backbenchers, and former Prime Minister Gordon Brown, believe this approach ignores the greater risks posed by online gaming.
In a letter addressed to Reeves, APG Chair Philip McGuigan MLA criticized the proposal, stating it contradicts Labour’s goal of reducing gambling-related harm. McGuigan pointed out that evidence shows that remote gaming products, like online slots and casino games, are significantly more harmful than remote betting. The British government, he argued, should not aim to equalize the taxation of these remote gambling types. Instead, he urged the government to use the upcoming budget as an opportunity to raise taxes on remote gambling, thereby offsetting the societal costs estimated to exceed £1 billion annually. McGuigan lamented the damage caused by online gaming and slots, calling the proposal for equal tax treatment “unacceptable.”
This position has gained momentum, finding support in recommendations from the Institute for Public Policy Research (IPPR). The think tank has proposed a 50% tax rate on remote gambling, estimating that such a policy could generate an additional £1.88 billion annually. These funds, they suggest, could be redirected to public health and treatment programs aimed at mitigating gambling-related harm.
The political landscape across the UK and Northern Ireland is shifting, with a growing consensus that the remote gambling industry is relatively “undertaxed” compared to other major markets. Despite this, industry leaders have pushed back, warning of potential negative consequences if the duty is increased sharply. Companies like Evoke and Betfred have voiced concerns that significant rate hikes could force them to cut back on high street operations, potentially leading to retail closures and job losses.
In contrast, the UK Parliament’s Treasury Committee, in a report released on November 7, has urged Reeves to stand firm against what they describe as “industry scaremongering.” The cross-party group, which includes MPs from Labour, Conservative, and Liberal Democrat parties, has heard from a range of stakeholders, including Paddy Power Co-founder Stuart Kenny and Betting and Gaming Council (BGC) CEO Grainne Hurst. The committee expressed criticism toward Hurst for not acknowledging the social harms associated with gambling, and they dismissed the BGC’s argument that higher taxes could disadvantage UK-based firms operating from offshore locations such as Gibraltar.
The Treasury Committee’s final recommendation emphasized that different forms of gambling inflict varying levels of harm on individuals, families, and society. The current Treasury policy on gambling taxes, they argued, does not adequately capture the extent of these harms. Consequently, they insisted that remote gaming duty and machine gaming duty should always be set higher than the general gaming duty.
As the November 26 budget announcement approaches, Chancellor Reeves faces the challenge of balancing fiscal recovery with public health priorities. She has previously stated that gambling operators must “pay their fair share,” a comment widely interpreted as a sign that higher taxes on online gaming may be on the horizon. With the debate intensifying, all eyes are on Reeves and her upcoming decisions, which could significantly impact the gambling industry’s future in the UK.
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