The Labour Party to Impose a £100 Million Gambling Levy
In the heart of mid-2025, the UK gambling sector finds itself at a crossroads as the government contemplates a significant shake-up in taxation policies. The demand for a £100 million increase in gambling taxes, equivalent to approximately €119 million, has been put forward, with the aim of addressing social harms linked to gambling and generating additional revenue for the Treasury [1][3].
The proposed reforms, which could see a flat 21% tax rate applied across all gambling sectors, are part of a broader effort to level the playing field, particularly in the online betting industry, which currently faces a 21% tax rate, while other sectors like horse racing are taxed at a lower 15% [1][3].
The Labour Party, led by Prime Minister Keir Starmer, has been a vocal advocate for higher gambling taxes. They believe that these taxes could fund social welfare policies, such as abolishing the two-child benefit limit and benefit caps, as part of their broader anti-poverty strategy [2][4]. However, the gambling industry, represented by groups like the Betting and Gaming Council, strongly opposes these tax hikes, warning of potential job losses, increased black market gambling, and damage to the industry and public finances [1][2].
Despite these concerns, there is no clear evidence of the Labour Party having close or compromising ties to gambling companies. Instead, Labour appears focused on increasing gambling tax revenues to fund social programs, counteracting industry resistance [1][4].
A notable point of contention is the potential delay in implementing a statutory levy on British gambling companies, intended for gambling-related research and treatment of gambling addiction. Activists, including chairs of the Samaritans, eight members of the House of Lords, academics, and other stakeholders, have written an open letter to Prime Minister Starmer, urging him to continue certain measures in the gambling sector. They fear that a delay in introducing the levy could lead to damage to mental health and potentially cost lives [1].
The gambling industry, however, is not taking this lying down. Horse racing organizations have even planned a strike in response to tax proposals that would eliminate their current lower 15% rate, fearing severe financial consequences and job cuts [3].
As the debate continues, it's clear that the UK's gambling industry is facing significant change, with tensions running high between the government, the gambling industry, and activists. The outcome of these discussions could have far-reaching implications for the industry and the nation's approach to gambling-related issues.
Online casinos in Germany, similarly to the UK, may experience changes in their taxation policies due to the shifting politics surrounding gambling. The policy-and-legislation discussions in the UK have demonstrated that higher gambling taxes could be implemented to address social harms and fund social welfare programs, as observed in the general news [5].
