Key Moments:
- Northern Ireland lawmakers have formally urged Chancellor Rachel Reeves to abandon planned tax harmonization for remote betting and gaming.
- The Institute for Public Policy Research has recommended raising the tax rate on remote gambling to 50%, with projections of £1.88 billion in additional annual revenue.
- Industry leaders have voiced concerns over potential job losses and retail closures if duty rates increase significantly.
Northern Ireland Assembly Opposes Unified Gambling Tax
UK Chancellor Rachel Reeves is encountering increasing pressure as politicians in Northern Ireland join others in rejecting government proposals for a unified Remote Betting and Gaming Duty (RGBD). The All-Party Group (APG) on Reducing Harm Related to Gambling from the Northern Ireland Assembly has released an open letter, appealing to Reeves to implement a higher tax rate for online gambling products rather than merging all remote gambling taxes under one rate.
Arguments Against Tax Harmonization
The proposed policy would align remote gambling duty rates at 21%. It aims to streamline taxation across operators. Supporters say this would simplify processes and balance the tax burden between betting and gaming companies.
Opponents — including the APG, Labour backbenchers, and former Prime Minister Gordon Brown — argue that this approach ignores the higher risks linked to online gaming.
APG Chair Philip McGuigan MLA wrote that harmonizing taxes for different types of remote gambling overlooks the added harms of online slots and casino games. He said: “Evidence shows that remote gaming products, such as online slots and casino games, are far more harmful than remote betting. The government should not harmonize these rates. Instead, it should use the upcoming budget to raise remote gambling taxes to offset the societal costs, which exceed £1bn a year.”
McGuigan further remarked on the negative impacts online gambling has on communities, labeling the proposal for equal tax treatment as “unacceptable.”
Broader Support for Tax Increases
The APG’s position aligns with recommendations from the Institute for Public Policy Research (IPPR). The IPPR has proposed a 50% tax rate on remote gambling. It estimates this could generate £1.88 billion a year for public health and treatment programs. Many policymakers now agree that remote gambling is undertaxed compared with other countries.
| Proposed Tax Rate | Potential Additional Annual Revenue |
|---|---|
| 50% (IPPR proposal) | £1.88 billion |
Industry Concerns and Parliamentary Response
Major industry stakeholders have voiced opposition, labeling the suggested tax increase as a “tax raid.” Companies such as Evoke and Betfred have indicated that higher rates could force them to downsize high street operations or close locations, putting jobs at risk.
The UK Parliament’s Treasury Committee, in a report issued 7 November, challenged the industry’s claims, encouraging Chancellor Reeves to disregard warnings of economic fallout. The cross-party group, comprised of MPs from multiple parties, heard testimony from executives such as Paddy Power Co-founder Stuart Kenny and Betting and Gaming Council (BGC) CEO Grainne Hurst. The committee’s report criticized Hurst for not acknowledging gambling-related social harms and dismissed the argument that increased taxes would disadvantage firms based offshore.
In its official recommendation, the committee concluded: “Different forms of gambling cause varying levels of harm to individuals, families, and society. We are not convinced that the current Treasury policy on the taxation of gambling captures the varying extent of those harms. The Treasury must ensure that remote gaming duty and machine gaming duty are always set at higher rates than gaming duty.”
Outlook Ahead of Upcoming Budget
With the budget set for 26 November, Rachel Reeves faces significant scrutiny as she weighs public health considerations against fiscal measures. Reeves has previously expressed the view that gambling operators must “pay their fair share,” raising expectations that tax increases for online gaming may be forthcoming.
- Author
Daniel Williams
