The UK gambling industry recently navigated potential financial upheaval with the announcement that the autumn budget would not implement the anticipated increases in gambling duties. This decision is welcomed by the sector, particularly as it continues to support substantial economic activities and national sports.
Stable taxes support industry growth:
Grainne Hurst, CEO of the Betting and Gaming Council (BGC), expressed approval of the government’s decision to maintain current tax rates, stating in a press release, “We welcome today’s budget and its commitment to not increase gambling duties on the regulated betting and gaming sector.” She noted that increased duties could have adversely impacted customers, inhibited growth, jeopardized jobs, and fueled the unregulated gambling market.
The industry, which injects £6.8 billion into the economy and supports 109,000 jobs, also plays a crucial role in funding popular British sports. Hurst highlighted that horse racing, for instance, receives approximately £350 million annually, thanks to the contributions from the gambling sector. Additional funding extends to the English Football League, snooker, darts, and rugby league, totaling over £52.5 million each year.
Despite the relief from stable tax rates, the BGC is assessing other budgetary changes, such as the increase in Employers’ National Insurance Contributions, which might affect smaller entities within the industry, including independent bookmakers and land-based operators like casinos.
The autumn budget did not propose any changes to the gross revenue from games of chance, which will remain consistent through March 2026. However, discussions are on the horizon regarding the potential unification of tax schemes for remote gambling in the following year.
According to G3 Newswire, Greg Swift, UK director of communications and corporate affairs, shared that the treasury’s stance on maintaining the gambling levies was pivotal, especially considering the potential implications for racing finances and employment within the sector.
Industry reactions and forward-looking statements:
Richard Moffat, director at OLBG, reflected on the industry’s initial concerns regarding a potential increase in remote gaming charges. “The new Labour government has avoided a crisis by keeping tax rates consistent, which is ultimately great news for consumers and the industry,” Moffat stated. He emphasized the importance of stable regulation to prevent consumers from migrating to less regulated, black market alternatives.
Additionally, Jamie Walters, CEO and co-founder of KiH Group, remarked on the implications of the unchanged tax rates, noting the challenges still presented by the increase in National Insurance contributions.
Neil Roarty, principal analyst at ClickOut Media, commented on the market’s reaction to speculative tax increases, pointing out the rapid recovery of gambling stocks once the government confirmed the status quo would be maintained.
Despite avoiding an immediate increase in gambling taxes, the industry remains alert to future regulatory considerations. iGaming Business highlights that while the current tax rates remain unchanged, the government has signaled potential consultations next year to explore a more streamlined tax framework for remote gambling. This indicates a forward-looking approach where the industry must stay engaged with regulatory developments to anticipate and shape future changes effectively.