UK Chancellor Rachel Reeves is set to announce a significant increase in taxes on bookies and casinos, potentially raising the industry's duties by £1 billion to £3 billion. This move has sparked intense lobbying efforts by the industry, with many predicting job losses and an exodus of punters to unregulated illicit operators.
The proposed tax rise would mainly target the remote gaming duty (RGD), which applies to online games of chance, at a rate of 21% of profits applied to what players win from punters. The machine games duty (MGD) for physical slot machines and the general betting duty (GBD) for bookmakers' winnings would also see significant increases.
Industry watchdogs argue that such steep tax rises would be counter-productive, driving the industry underground where customers are at greater risk of exploitation. However, experts warn that the threat of an exodus to parallel markets cannot be ignored, and that some level of taxation above 35% could wipe out profitability for the UK online gaming industry.
Horse racing also faces tax increases, with recommended measures including a carve-out from higher duties for horse racing income. The bookmakers claim this would harm the sport's finances.
While some critics view Reeves' proposed increase as an anti-growth tax that will backfire, others argue that it is long overdue for a sector perceived to be grown fat on misery. The devil lies in the detail, with industry analysts warning of potential unintended consequences if taxes rise too steeply.
Critics have accused the gambling industry of scaremongering and overhyping the risks of increased taxation. They point out that the industry's own predictions about job losses and exodus to parallel markets are often exaggerated or based on flawed analysis.
The intense lobbying efforts by the betting and gaming council (BGC) suggest a well-rehearsed playbook, with claims of impending disaster repeated in previous regulatory shake-ups. However, experts caution against taking these warnings at face value, highlighting the complexities of the industry and the need for nuanced policy-making.
As Reeves prepares to announce her budget, industry insiders expect a middle ground proposal that would raise between £1 billion and £2 billion without triggering significant job cuts. The proposed increases in taxes will likely target RGD and MGD more heavily than GBD to avoid disrupting horse racing's finances and income streams from media rights deals.
The proposed tax rise would mainly target the remote gaming duty (RGD), which applies to online games of chance, at a rate of 21% of profits applied to what players win from punters. The machine games duty (MGD) for physical slot machines and the general betting duty (GBD) for bookmakers' winnings would also see significant increases.
Industry watchdogs argue that such steep tax rises would be counter-productive, driving the industry underground where customers are at greater risk of exploitation. However, experts warn that the threat of an exodus to parallel markets cannot be ignored, and that some level of taxation above 35% could wipe out profitability for the UK online gaming industry.
Horse racing also faces tax increases, with recommended measures including a carve-out from higher duties for horse racing income. The bookmakers claim this would harm the sport's finances.
While some critics view Reeves' proposed increase as an anti-growth tax that will backfire, others argue that it is long overdue for a sector perceived to be grown fat on misery. The devil lies in the detail, with industry analysts warning of potential unintended consequences if taxes rise too steeply.
Critics have accused the gambling industry of scaremongering and overhyping the risks of increased taxation. They point out that the industry's own predictions about job losses and exodus to parallel markets are often exaggerated or based on flawed analysis.
The intense lobbying efforts by the betting and gaming council (BGC) suggest a well-rehearsed playbook, with claims of impending disaster repeated in previous regulatory shake-ups. However, experts caution against taking these warnings at face value, highlighting the complexities of the industry and the need for nuanced policy-making.
As Reeves prepares to announce her budget, industry insiders expect a middle ground proposal that would raise between £1 billion and £2 billion without triggering significant job cuts. The proposed increases in taxes will likely target RGD and MGD more heavily than GBD to avoid disrupting horse racing's finances and income streams from media rights deals.
This whole thing is like that old movie "The Wolf of Wall Street" where Jordan Belfort would promise you the world but secretly screw you over 
. The bookies and casinos are just pretending to be all shook up about these tax increases, but deep down they know it's a necessary evil 
. I mean, who doesn't love a good game of chance, right? But seriously, £1 billion to £3 billion is a pretty penny, and it's only fair that the industry contributes more to the public purse 
. I'd love to see Rachel Reeves' middle ground proposal come to fruition – something that'll bring in some much-needed cash without totally crushing the industry 
. Let's hope she gets it right and we don't end up with a total casino collapse 
!
i mean, i get it, someone's gotta pay for all those government things and stuff... but can't they just find a way to make the bookies and casinos pay more without being so harsh? 
. and what about all the jobs that'll be lost? 
im not sure if the gov is thinking this one through 
. But if it just ends up creating more problems than it solves... well, we'll all be affected in the end 
. I'd love to see a middle ground proposal that brings in some much-needed revenue without causing too much chaos 
. Fingers crossed Reeves can pull off a balanced budget 
.
. They're like vampires, sucking money out of people's pockets while pretending to be entertainment 
The £1-£3 billion tax rise is a step in the right direction, even if it means some industry jobs will be lost 
. It's not like they're being forced to close shop just yet 
And honestly, who doesn't want a more transparent and safe online gaming scene? 
Maybe we can even use the increased revenue for good causes 
The UK's gambling industry has been repeatedly warned about the dangers of unregulated parallel markets, but still they can't resist the temptation to lobby for their own interests. This time around, it's all about lining their pockets with even more cash, while taxpayers foot the bill. It's not rocket science, just basic math: if you tax something, businesses will adapt and find ways to work around it. The question is, what kind of measures are being put in place to prevent this from happening? Only time (and a decent budget) will tell 
I'm so glad we're finally talking about taxing the bookies, because let's be real, they've been making bank off our poor souls for far too long 
. It's high time someone took a bite out of that sugary sweet profit pie 
. And yeah, I'm sure it'll be a total disaster when all those jobs get slashed 
... but at least the punters will be safe from exploitation 
... probably.
but i think its about time we reformed this dodgy sector 
so let me just throw some stats at you 
. According to a recent study, for every 100 jobs lost in the industry, around 10 new ones are created in other sectors related to gaming 
. So while some folks might lose their jobs, others could find new opportunities 
) off vulnerable people 
. So, yeah... let's just say I'm all over the place 
. Maybe we'll get a happy medium proposal from Reeves? 