UK Treasury looks to restructure bookmaker taxation
This update follows previous efforts to increase industry taxes, which fell short earlier this year.
Key points:
– The UK Treasury is reportedly advancing a proposal to restructure remote betting tax
– The reform seeks to move away from the current three-tax structure
– MPs in the nation are utlising the development to call for raised taxes on the UK industry
The UK Treasury is looking to restructure remote gambling tax in the UK away from its current three-tax system, as pressure mounts on Chancellor Rachel Reeves to introduce a levy on the industry.
However, this latest development comes hot on the heels of additional reports in Q4 2024 which suggested the UK Government would be raising gambling taxes – causing share prices to spiral despite the fact that the levy ultimately failed to materialise.
This latest proposal was originally introduced by HMRC in April and seeks to shift remote gambling taxation in the UK away from its three-tax system, which enforces separate tax rates on General Betting Duty (GBD), Remote Gaming Duty (RGD) and Pool Betting Duty (PBD). Indeed, the changes introduced by HMRC are now advancing through the Treasury, which claims that the proposal looks to simplify the archaic tax treatment of bookmakers in the nation.
Nevertheless, many MPs are now reportedly utilising the proposal to re-introduce the push for raised taxes on the gambling industry – with former Prime Minister Gordon Brown stating as part of a May opinion article in the Guardian that raised gambling taxes could generate £3bn ($4bn).
Good to know: The UK Treasury has clarified that this latest action seeks to “reduce bureaucracy” and will not explore the modification of tax rates
In November 2024, the UK’s Labour Government revealed a £100m statutory gambling levy on the industry as part of the UK White Paper on gambling.
Speaking to the Financial Times, Betting & Gaming Council CEO, Grainne Hurst, said: “A duty rise would simply jeopardise bookmakers’ contributions on the economy, on sport, on growth and jobs. Regulated betting and gaming is popular, safe and one of Britain’s few global business success stories.”
Gambling Insider has reached out for additional comment.
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