A possible increase to the existing gambling tax levy could be coming in the United Kingdom, argues The Observer's Whitehall Editor, Catherine Neilan.
The journalist has cited both sources, as well as reminding readers of the reality that the Chancellor of the Exchequer, Rachel Reeves, is facing some difficult decisions, including a gaping budget deficit that would be hard to fund through anything but unpopular tax decisions.
A gambling tax increase is not without its merits
Raising taxes universally costs political capital, and Reeves may be looking to plug the gap by targeting some of the most unpopular industries, such as gambling, and introducing a bank tax, while also taxing the wealthy even more.
According to observers, such as the Institute for Public Policy Research, an increase in online betting tax could contribute £3bn, but there will need to be a change in the current rates. Online casinos pay 21% presently, but Reeves may be looking to align this with other jurisdictions across Europe, which are already taxing their online operators more.
Casino Guru's Head of Casino Research, Matej Novota, also expressed concern over the introduction of a tax increase "On one hand, the government is pushing for stricter standards—which come at a cost for licensed operators—while on the other, it’s introducing heavier taxes. This double pressure only strengthens the black market, where operators face no such obligations and enjoy a clear competitive advantage."
The Netherlands is a good example of a lucrative market where the taxes aren’t low. Dutch-licensed operatorsneed to foot a 40% tax bill, which is what Reeves may seek to implement next. The IPPR agrees with this figure, arguing that 41% could be the right amount to tax the gambling industry.
This is not the first time that the gambling tax has been the subject of debate in the United Kingdom, with the idea floated previously late in 2024 and taken up once again in early 2025. While those plans stalled, Reeves may be running out of options to fund the budget.
Naturally, critics of the proposed tax increase have argued that it would limit the industry’s competitiveness and potentially cost jobs, while offshore operators are having a field day in the context of an increasingly difficult business environment for licensed operators.
