Government of Labour Chooses Not to Elevate Gambling Duty
In a surprising turn of events, the UK Labour government has opted to maintain the current gambling taxes in their recent budget, much to the relief of the betting and gaming industry. Grainne Hurst, the chief executive officer of Britain's Betting and Gaming Council (BGC), warmly welcomed this decision, acknowledging it as a victory for jobs, growth, and investment in the sector.
The new budget, unveiled by the Labour Party after 15 years, outlines tax increases across various sectors, but the gambling industry has been spared from this wave. The government's decision not to impose an increase in gambling duties was a result of careful consideration of the industry's points, as confirmed by Hurst.
The British Gambling Commission (BGC) is also likely pleased with the outcome, as a potential tax increase could have raised an additional £3 billion a year, according to experts. However, the government aims to raise an additional £40 billion in taxes, and a review of gambling tax policy is underway, with potential measures to be announced in the autumn budget.
The BGC will continue to study the impact that increased Employers' National Insurance Contributions will have on its members, particularly smaller and independent operators. Industry proponents argue that an additional tax would hurt the market, pushing consumers towards the black market and negatively impacting employment and revenues in racing and betting sectors.
Former Prime Minister Gordon Brown has publicly supported significant increases in gambling taxes, estimating that they could raise £3.2 billion and be used to help reduce child poverty. However, the gambling industry, represented by groups like the BGC and companies such as Entain, warn of negative economic impacts.
Interestingly, the UK's decision to keep gambling taxes intact comes several days after France similarly decided against raising the gambling tax. Both decisions have been met with mixed reactions, with some supporting the potential tax increase for the gambling sector, while industry representatives remain wary of its implications.
BGC members remain committed to enacting the Gambling Act reforms, in accordance with the white paper, which called for higher standards. As the review of gambling tax policy continues, the industry awaits forthcoming policy announcements, likely in the autumn budget.
[1] Institute for Public Policy Research (IPPR) proposal: https://www.ippr.org/research/publications/gambling-tax-reform [2] Gordon Brown's support for tax hikes: https://www.theguardian.com/society/2025/aug/01/gordon-brown-backs-labour-gambling-tax-hike-to-fund-social-programmes [3] Impact of tax hikes on the gambling industry: https://www.bettingandgamingcouncil.co.uk/news/2025/08/03/labour-government-considers-gambling-tax-hikes-but-no-definite-decision-yet/ [4] Child poverty reduction through tax hikes: https://www.ippr.org/research/publications/gambling-tax-reform [5] Current status of tax hike proposals: https://www.bbc.co.uk/news/business-60743610
- The British Gambling Commission (BGC) and gambling companies like Entain may be encouraged by the UK Labour government's decision to maintain current gambling taxes, as an additional tax on the gambling industry could potentially generate an extra £3 billion annually according to experts.
- The gambling-trends and casino-culture in the UK have led to an ongoing debate about the influence of the finance sector on business decisions, such as the recent decision to maintain gambling taxes, which is said to uphold the status quo of casino-and-gambling.
- The gambling industry, represented by organizations like the BGC, has emphasized the potential negative economic impacts associated with raising gambling taxes, citing potential harm to smaller and independent operators, increased push towards the black market, and negative impacts on employment and revenues in racing and betting sectors.
