Doubts Raised over MPs’ Claim of Billions from Taxing Betting

The MPs argue that doubling General Betting Duty to 30% and lifting Remote Gaming Duty to 50% could bring in £2.9bn in the first year. Calculations by Regulus suggests nearer £2.1bn – unless other hikes, like Machine Games Duty at 50%, are included.

Critics have noticed that the plans ignore the fact that casinos, betting shops and adult gaming centres run on small 10% margins, which means that taxes like these could wipe out profits and lead to a loss of 80,000 jobs.

The Betting and Gaming Council has warned that these tax increases could be pointless for the government. Their spokesperson said:

“Hiking taxes on the regulated betting and gaming industry would be a short-sighted goal – hitting jobs, investment and sports funding, without boosting Treasury coffers. As the chancellor herself recognised, our industry makes a significant economic contribution – with our members pumping £6.8 billion into the economy, paying £4bn in taxes, and supporting 109,000 jobs.

“Piling on more tax rises, on top of reforms that have already cost more than £1bn, risks undermining a world-leading and responsible industry and will only drive people into the hands of the black market – which pays no tax, offers no protections, and puts UK jobs and growth on the line.”

A Quick Look at How This Could Affect the UK Market

If these proposals go ahead – the UK could see more players moving to offshore or blacklisted casinos, which is the opposite of what regulators want. So with the UK Gambling Commission pushing for safer play and responsible gambling practices, the industry will be keeping a close eye on whether the Treasury’s sums add up or not.