Calls Grow for Gambling Tax Increase

The calls for further regulation of the UK gambling industry continue with Surrey councils among those asking the government to reform current laws. There is growing talk of tax rises and that could affect not just online casinos but the horse racing industry.

Spelthorne, Surrey Heath and Runnymede councils have all been signatories to an open letter sent to the Secretary of State for Culture. Media and Sport. They were among 40 councils from around the country to sign the letter. It has received the endorsement of the all party parliamentary group on gambling reform.

Both online and land-based gambling is causing concern. There was dismay over a new gambling facility in Ashford in Surrey even though local people had protested against it. It was approved by a planning inspector after the application had initially been refused by the council.

The letter calls for councils to have more powers in areas such as rejecting gambling premises applications, advertising and seeing more money raised for research into gambling addiction. This year has already seen stricter regulation taken against the online gambling industry.

Online slot games now have maximum stake limits. Those aged between 18 and 24 can only stake a maximum of £2 per spin. It’s £5 for older players, though there remain calls for the £2 limit to be imposed on all players and the speed of the games reduced.

A mandatory levy of £100 million a year for licensed UK gambling companies has also been introduced this year as per top 20 casinos. The sums raised will be used to fund research into gambling harm and pay for treatment of those suffering.

Alex Ballinger is the Labour MP for Halesowen and believes the £100 million is a “positive move” but a “drop in the ocean”.” He has also been vocal on an issue that is causing great concern for both the gambling and horse racing industries.

Proposals have been made to create just one single gambling tax to replace the current three-tier system. The fear is that this will see tax rates increase to a general 21% for all areas of the industry.

Mr Ballinger believes that online casinos and slot games “should keep paying a higher rate of tax than your local bingo hall or bookmakers.”

Former Prime Minister and Chancellor of the Exchequer Gordon Brown has described the gambling industry as “undertaxed.”  Writing for the Guardian, he stated that gambling levies “should be one straightforward Budget choice” for current Chancellor Rachel Reeves this autumn.

The Betting and Gaming Council (BGC) have condemned Brown’s proposals, describing them as being “economically reckless” and “factually misleading.”

Above all, the BGC fears that rises and further regulation will lead to more gamblers heading to the unlicensed and unregulated black market. Those doing so don’t just rob the licensed sites of revenue, their levels of customer protection are also considerably lower. The black market also does not contribute towards the mandatory levy or pay taxes to the treasury.

Every year fans flock to Epsom Downs for high-class horse racing. The highlight is of course in June when the Derby and Oaks are held. This year has been another successful one for the Surrey racecourse.  

In the coming month there is a meeting on August 25 followed in September by meetings on the 11th of September before the season finale 17 days later. That final day of the season sees the Apprentice’s Derby being held. It’s a race that is sponsored by the UK gambling company Betfred as are all the races on that card.

If gambling taxes were to increase, this could cause serious problems for the UK horseracing industry. The British Horseracing Authority (BHA) have now launched a #AxeTheRacingTax petition

Research has shown that if the feared tax rise from 15 to at least 21% is confirmed, £330 million revenue could be lost over a period of five years. This could result in 2,752 jobs being put at risk in the first year after the tax increase.

The BHA are seriously concerned over how a tax rise would affect the economic sustainability of horseracing and also local communities that depend on the industry..

Brant Dunshea is the CEO of the BHA and has said the tax rise would undermine “a much-loved part of British heritage and culture.” 2024/25 saw Levy payments to the Horseracing Betting Levy Board increase for the fourth successive year.

A total of £108 million was paid, compared to £97 million in 2021/22. This is despite the fact that betting turnover on the sport has been falling. Some blame has been put on the amounts being wagered on the black market.

The Autumn Budget will see a final announcement made on whether gambling taxes will be rising. It’s an anxious time therefore for both the horse racing and online gambling industries.