There was relief for UK gambling as previously speculated tax rises for the industry were absent from the 2024 budget.
Delivered by Chancellor Rachel Reeves, the budget was Labour’s first for almost 15 years and saw tax increases of £40bn as she sought to secure economic stability for the UK.
Reeves emphasised that it was essential for the government to take such drastic action, taking aim at the economy and a £22bn black-hole that her party inherited from its Conservative predecessors.
However, the plans drew significant criticism from opposition leader Rishi Sunak, who accused Labour of “fiddling the figures” and going back on manifesto promises.
Amidst much speculation however, there was relief for UK Gambling as it continues on a path of regulatory overhaul with the news that gross gaming yield bandings will be frozen from 1 April 2025 to 30 March 2026.
There were also plans announced for reform of remote gambling duty – aligning gambling offered over the internet, telephone, TV and radio into a single tax, in a bid to “close loopholes in the system”.
From the perspective of the wider UK economy, one of the most notable takeaways saw Reeves accelerate the UK’s economic shift with a new structure for capital gains taxes on investments and property.
The lower rate set to increase from 10% to 18%, the higher rate from 20% to 24%, and residential property tax remaining at 18%
In the weeks leading up to the budget, The Guardian reported there was serious consideration being given to a steep rise in tax on the gaming.
It caused Entain CEO Gavin Isaacs to apprise investors and the government regarding the impact of a potential tax increase on the wider economy.
Yet there were no changes to tax policies on UK Gambling which will maintain its tiered threshold of 15% to 50% for land-based gaming and 21% on remote gambling duties.
It was touted by the Institute for Public Policy Research (IPPR) that as much as £3.4bn could be raised by 2030 through the increasing of remote gaming duty to 50%, more than double the 21% it currently sits at.
Isaacs noted that such increases would “have a materially, detrimental impact on the economic contribution of wider industry”.
There were also stark warnings from the industry over crippling the sector and its potential to grow the black market.
Betting and Gaming Council CEO Grainne Hurst stated that calls for tax rises were being fuelled by “fantasy economics”.
She stated: “Our industry is at a crossroads as we seek to implement the measures contained in the White Paper, measures that will cost our sector over £1bn. We also can’t ignore the new levy on research, prevention and treatment for problem gambling, which will raise £100m a year from bookmakers.
“After so many years of uncertainty, we need stability to deliver sustainable investment, not further change which threatens to undo that contribution.”
