The British gambling industry is breathing a huge sigh of relief today after rumours of a 100% tax hike proved unfounded.
In the last month, two separate think tanks recommended huge tax increases on the gambling industry. Share prices in online gambling firms tumbled in anticipation and the industry was truly braced for a storm.
But when UK Chancellor Rachel Reeves took to the despatch box to deliver her verdict, there was absolutely no mention of the gambling industry. A series of other swingeing tax increases were there in terms of employer contributions and capital gains tax increases, but the gambling industry and the igaming walked away unscathed.
The chancellor wrote separately in the full budget that she would look to streamline the system next year. Right now UK remote gaming duty is 21% of operator profits, while general betting duty is 15% of net stake receipts. Pool-betting duty is 15% of pool betting receipts.
“The government will consult next year on proposals to bring remote gambling (meaning gambling offered over the internet, telephone, TV and radio) into a single tax, rather than taxing it through a three-tax structure. This will aim to simplify, future-proof and close loopholes in the system,” the budget papers said.
Rumours of a massive tax hike reached fever pitch when The Guardian newspaper printed a story that referenced the two hugely influential think tanks’ verdicts. Both believed that a big increase on gambling levies, from 21-100%, could help raise much-needed funds and plug a hole in the government books.
The British Gambling Commission railed against changes, industry figures pleaded with the government not to attack the successful gambling and gaming industry and the stage was set for a painful Budget.
It’s a real surprise that nothing came of the story in the end and mirrors the rather bizarre situation in France where similar rumours came to nothing in the final budget.
The industry still expects there to be changes that go beyond simple efficiencies in 2025 but is now more hopeful that its representatives can strike a sensible deal with the government rather before it gets slammed by the taxman.
Yesterday was a good day for the British gambling industry. And after a deep sigh of relief, it’s time to look forward to another productive year in the igaming and sports betting sectors.