Rachel Reeves is being encouraged to reject concerns from the gambling industry and unveil potential tax increases in the upcoming budget. A key group of MPs has advised the Chancellor to proceed with measures aimed at penalizing companies profiting substantially from gambling activities, which are causing significant harm.
The Treasury Committee, in a recent report, recognized that while many individuals gamble responsibly through traditional means like arcades and bingo, there has been a notable shift towards online betting platforms that promote harmful and addictive behavior with no tangible benefits to individuals, families, or communities.
Despite pushback from the industry claiming no negative social impact from gambling, the committee dismissed these assertions. Dame Meg Hillier, the committee chair, emphasized the detrimental effects of online betting, stating that the industry is exploiting vulnerable individuals and generating substantial revenue from addictive forms of gambling.
The report highlighted a substantial increase in online gambling profits over the past decade, reaching £6.9 billion annually. It recommended raising the current 21% duty on remote gaming and the 20% duty on machine games to better reflect the harm caused by these activities, surpassing the duty paid by traditional casinos.
However, the proposed tax hikes may face opposition from bookmakers and establishments hosting slot machines, citing potential negative impacts on their operations. Additionally, there are concerns that higher taxes could drive consumers towards illicit betting services.
Former Prime Minister Gordon Brown has previously advocated for increased levies on gambling profits to address poverty issues. Speculation surrounds whether horse racing will be exempt from the proposed tax changes in the gambling sector.
