Labour MP pushes for higher gambling taxes as racing industry fights treasury harmonisation plans

Alex Ballinger has criticised the Government's statutory levy on gambling companies as insufficient, calling for sweeping reforms to address what he describes as an underestimated societal problem.

Labour MP pushes for higher gambling taxes as racing industry fights treasury harmonisation plans

Key points:

– Labour MP Alex Ballinger says a statutory levy is not enough to tackle gambling harm

– He wants a modern Gambling Act and higher taxes on the riskier online gambling products

– The BHA warns that tax changes could severely impact horseracing, arguing it should not be treated the same as online casinos

Labour MP Alex Ballinger has renewed calls for far-reaching reforms to the UK’s gambling laws, arguing that the Government’s new statutory levy on betting companies is only a “drop in the ocean” when it comes to tackling the harms faced by some of society’s most vulnerable people.

Ballinger, a former Royal Marine and aid worker, says that the scale of gambling harm – which affects more than a million people nationwide, according to the Gambling Commission – remains widely underestimated.

The statutory levy, which aims to raise £100m ($135m) a year to fund NHS-led treatment services, has been welcomed by many campaigners, but Ballinger claims it does not go far enough. He is advocating for a taxation system that sees the most risky forms of gambling, like online casinos and slots, contribute more to address the social costs he claims they cause.

He warned that a Treasury consultation on harmonising remote gambling duties must avoid “unintended consequences” that might incentivise operators to push players towards riskier online products.

Ballinger’s comments come amid growing debate over how new tax proposals could affect different parts of the UK’s gambling ecosystem.

The British Horseracing Authority (BHA) recently launched its ‘#AxeTheRacingTax’ campaign, arguing that aligning betting on racing with online casino tax rates would threaten the financial sustainability of British racing.

According to the BHA, the Treasury’s plan to equalise gambling duties could cost the racing industry at least £66m a year and lead to significant job losses.

Racing advocates contend that betting on horseracing should be recognised as a lower-risk, skill-based form of gambling compared to high-speed online slots.

While Ballinger acknowledges that simplifying tax structures has merit, he supports keeping a higher rate for the most addictive forms of gambling, claiming that online casinos and slots should not be taxed the same way as “your local bingo hall or bookmakers.”

Good to know: Ballinger believes the public backs tougher measures, pointing to a Social Market Foundation report that found 74% of people supported raising taxes on gambling firms

Ballinger also wants stronger controls on gambling advertising, especially where it targets younger or more deprived communities.

Reflecting on his own time in the military, he highlighted the particular risks faced by servicemen and veterans – a group statistically more likely to develop gambling problems.

He argues that the new Gambling Act must better reflect the digital age, where around-the-clock access and gamified online products make gambling more widespread than ever.

As the Treasury weighs its next steps, the contrasting perspectives of MPs like Ballinger and industry bodies such as the BHA highlight the complex trade-offs the Government faces in balancing public health concerns with the economic contributions of the wider gambling sector.

Topics
Legal & RegulatoryIndustryHorseracingResponsible Gambling
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Jack Found
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Jack Found was a contributor to Gambling Insider, where he wrote on developments within the global gambling and iGaming industry. His work focused on industry news and topical issues relevant to operators, regulators and stakeholders across the gaming sector.

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