Key Moments:
- The UK Treasury has reportedly abandoned its plan to combine three gambling taxes into a single Remote Betting and Gaming Tax.
- Industry groups, especially the British Horseracing Authority, warned the merger could negatively impact horse racing revenues.
- The autumn budget, scheduled for November 26, is anticipated to propose further tax increases for other gambling duties.
Government Retreats from Tax Consolidation
The UK Treasury has reportedly decided to abandon proposals to merge the Remote Gaming Duty (21%), General Betting Duty, and Pool Betting Duty into a unified Remote Betting and Gaming Tax. The proposed reform, introduced during an April consultation to streamline the country’s gambling tax framework, faced significant opposition from stakeholders, most notably the British Horseracing Authority (BHA). Concerns were raised regarding the potential harm to horse racing, as it would have faced the same tax rate as online gaming and slots.
Horse Racing Sector Claims Victory
Multiple sources cited by The Telegraph indicated that the government’s decision marks a win for the BHA, which advocated against the reform through its “Axe the Tax” initiative. The campaign highlighted the economic and cultural importance of horse racing and stressed that the proposed changes could undermine vital revenue streams for the sector.
Market Uncertainty Remains
Despite the withdrawal of the merger plan, the UK gambling industry continues to face uncertainty. The upcoming autumn budget on November 26 is expected to include potential tax hikes targeting other segments of the sector. Chancellor Rachel Reeves is reportedly evaluating increases to Machine Gaming Duty—currently at 20%—as well as additional rises in Remote Gaming Duty as part of broader industry revenue measures.
Ongoing Debate over Duty Increases
Research organizations including the Institute for Public Policy Research and the Social Market Foundation continue to advocate for raising these duties to 50%, arguing that online gambling generates profits that far exceed the social harms. In contrast, the Betting and Gaming Council has voiced strong opposition to steep increases in tax, citing concerns that higher rates could push consumers towards unregulated markets and threaten employment across the industry.
Outlook Ahead of the Autumn Budget
While the immediate threat of a unified gambling tax has receded, operators and investors in the sector are watching closely as further fiscal measures could soon impact the entire gambling landscape in the UK.
| Tax/Duty | Current Rate | Status |
|---|---|---|
| Remote Gaming Duty | 21% | Unchanged; potential future increase |
| Machine Gaming Duty | 20% | Potential increase under consideration |
| General Betting Duty | Not stated | Merger proposal dropped |
| Pool Betting Duty | Not stated | Merger proposal dropped |
- Author
Daniel Williams
