MPs expressed broad support for an increase in gambling taxes in the UK during debates in Parliament this week, although some raised concerns that poorly designed or excessive increases could push licensed operators out of the market and lead to an increase in illegal activities.
In November, the chancellor confirmed UK-licensed operators would face higher remote gaming duty and a new general betting duty. Remote Gaming Duty will rise from 21% to 40% in April, while General Betting Duty for remote betting will increase to 25%, up from 15%, by April 2027.
Could tax increase fuel illegal gambling growth?
Some MPs this week expressed concern over the impact the gambling tax increase could have on illegal gambling. It was noted that higher tax rates could push some licensed operators out of the market and lead to more players gambling with unlicensed operators.
Conservative MP Louie French made reference to “unintended consequences” from tax rises and urged the government to tread carefully when raising tax rates.
“When policy decisions, including sharp tax rises, weaken the legal, regulated market – I’ve said openly before that I do not mind bashing the bookies, but I am worried about the growth of this – the activity does not stop, but moves to the illegal market,” French said.
“I’ve made that point before in the House. Evidence from abroad shows such displacement to the black market, where there are no age checks, safeguards or accountability. In my opinion, that environment is far more dangerous for children and adults alike.”
Another parliamentary debate this week focused on gambling harms among children and young people. However, the tax increase became central to the debate, with MPs discussing the impact additional funds would have on helping those at risk from gambling harms.
On the whole, MPs were supportive of the UK gambling tax rise and how it could support protection efforts with additional funding. Labour MP Alex Ballinger, who was among those calling for taxes to rise, praised a targeted tax on the “most harmful” forms of gambling such as online slots and casinos.
“We are protecting people by incentivising gambling companies not to work in those areas,” he said.
MPs welcome impact of new gambling levy
Parliament also referenced the new Statutory Levy which came into effect in April 2025. This was designed to generate additional funds to support the research, prevention and treatment of gambling-related harm.
“I welcome the changes to the gambling levy,” Labour MP Kevin McKenna said. “I particularly welcome the fact that it is targeted at children in poverty. The money is being used to offset the harm, socially, that is directly caused by gambling.”
Jim Dickson, another Labour MP, said: “I’m heartened by some of the steps the government is taking such as ensuring the gambling levy money is spent on research and treatment and targets the communities and people most at risk. Also, the chancellor’s announcement in the budget that we are seeking to raise taxes on the most harmful forms of gambling.”
Continuing concerns over job losses
A separate debate this week on the Finance Bill – which will include the increased gambling taxes – also flagged concerns among MPs. These were not limited to black market growth, with MPs also referring to job losses and shops closures on the back of the increases.
Some operators, including Entain and Evoke, voiced similar worries when the tax rises were first announced.
“When taxes rise too far, behaviour can change and the yield can go down,” said James Wild, shadow exchequer secretary to the treasury. “Rather than reducing demand, activity will move to unregulated markets where consumer protections are weaker, fraud risks are higher and tax revenue is not collected.”
Labour MP Gareth Snell added: “A report from the Office for Budget Responsibility states there will be a drive towards the black market as a result of these taxation changes. That is much more damaging, will raise much less revenue and, ultimately, will be much more damaging to our economy.”
BGC urges evidence-led approach
Following the two debates, Betting and Gaming Council CEO Grainne Hurst also aired her concerns over the matter. She called on the government to take an evidence-led approach that will protect jobs and regulate industry growth.
“MPs were right to highlight the real-world consequences of further gambling tax rises which will result in job losses, shop closures and will drive customers towards the unsafe and harmful black market.
“The regulated betting and gaming industry currently supports 109,000 jobs across the country, contributes £4 billion in tax and plays a vital role in funding sport, charities and safer gambling. Undermining the sector with these further tax increases has handed a gift to the growing illegal operators who pay no tax and offer no protections.
“We urge the government to take an evidence-led approach that supports jobs and growth, protects funding for charities and avoids rewarding the illegal and harmful black market.”
Concerns among some MPs included the rise of illegal gambling and potential job losses.