Key Moments:
- 101 Labour MPs have signed a letter urging the government to impose a targeted levy on harmful online gambling products
- The proposed measures aim to generate funds to scrap the two-child benefit cap and address child poverty
- The Betting and Gaming Council has voiced strong opposition to increasing taxes on the regulated betting and gaming industry
Labour MPs Call for Targeted Online Gambling Levy
An effort to raise gambling taxes in the UK has gained momentum as 101 Labour Members of Parliament have signed a letter addressed to Chancellor Rachel Reeves. The letter, initiated by Alex Ballinger and Beccy Cooper of the All Party Parliamentary Group for Gambling Reform, advocates a “targeted levy on harmful online gambling products” to address child poverty. Signatories account for nearly half of Labour’s backbenchers.
No child should grow up in poverty while gambling companies make record profits. Gambling harms are increasing, yet gambling is VAT exempt. @BeccyCooper4Lab and I wrote to the Chancellor with over 100 Labour MPs to call for increasing gambling taxation to tackle child poverty. pic.twitter.com/8xrBQJ34Zy
— Alex Ballinger MP (@AlexBallingerMP) September 25, 2025
Policy Proposals and Political Support
The communication proposes that revenue from the levy should be used to remove the two-child benefit cap. As stated in Ballinger’s letter: “No child should be growing up in poverty while gambling companies continue to enjoy record profits. Harms from gambling place a huge burden on our public services, costing the Exchequer over £1bn a year. It’s time to confront these excessive profits, reduce gambling-related harm, tackle poverty, and ensure gambling is taxed fairly.”
Former Labour prime minister Gordon Brown has endorsed recent proposals by the Institute for Public Policy Research (IPPR). These recommendations include raising remote gaming duty for online casinos from 21 to 50 percent, increasing slot machine games duty from 20 to 50 percent, and general betting duty on non-racing bets from 15 to 25 percent. According to IPPR, these measures could raise £3.2bn.
Broader Political and Industry Reactions
Earlier this week, the Liberal Democrats adopted an official policy backing a gambling tax increase.
The debate has also begun to create divisions between the gambling industry and horseracing sector, which have traditionally worked in close alignment. Some figures in the gambling sector have accused the British Horseracing Authority of negotiating with anti-gambling advocates to secure a better deal for horseracing betting at the expense of other gambling segments facing higher taxation.
Industry Perspective
The Betting and Gaming Council has taken a strong stance against proposed Treasury plans to unify three separate taxes under a new Remote Gaming and Betting Duty. The organization fears this consolidation would lead to higher taxes on horseracing betting.
In response to mounting policy pressure, the Council released a statement: “We strongly oppose proposals to raise taxes on the regulated betting and gaming industry. Such a move would be short-sighted, harming jobs, investment, and sports funding, while failing to deliver more revenue.
“Every time the Treasury squeezes the regulated sector, it strengthens the unsafe black market, which pays no tax, offers no consumer protection, and puts UK jobs and growth at risk.”
Proposed Gambling Tax Adjustments
| Tax Type | Current Rate | Proposed Rate |
|---|---|---|
| Remote Gaming Duty (Online Casinos) | 21% | 50% |
| Slot Machines Games Duty | 20% | 50% |
| General Betting Duty (Non-Racing Bets) | 15% | 25% |
- Author
Daniel Williams
