UK think tank reiterates call for gambling tax hike, says black market ‘unlikely to be a major threat’

Steve Tyler Free Content

UK think tank reiterates call for gambling tax hike, says black market ‘unlikely to be a major threat’

Summary

The Institute for Public Policy Research (IPPR) has renewed calls for a substantial rise in UK gambling taxes, proposing remote gaming duty be raised from 21% to 50%, machine games duty from 20% to 50% of operator profit, and general betting duty from 15% to 25%. The think tank estimates these changes could raise more than £3bn a year and around £1.8bn in 2026-27, funds it says could be used to remove the two-child limit and lift the benefit cap to tackle child poverty. The IPPR argues the black market threat from higher taxation is overstated, while industry bodies warn tax hikes risk pushing players offshore, harming jobs and sectors such as horseracing. The proposals have been backed by former PM Gordon Brown and come as the government faces pressure to raise taxes in the autumn budget.

Source

Source: https://igamingbusiness.com/finance/uk-think-tank-gambling-tax-hike-black-market-no-threat/

Key Points

  • • IPPR recommends remote gaming duty rise to 50%, machine games duty to 50%, and general betting duty to 25%.
  • • The think tank estimates more than £3bn pa in additional revenue, with roughly £1.8bn in 2026-27.
  • • Proposed revenue could fund scrapping the two-child limit and lifting the benefit cap to reduce child poverty.
  • • IPPR says altering tax rates is unlikely to drive large numbers to the illegal black market.
  • • The Betting and Gaming Council (BGC) and industry groups say higher taxes risk moving players to unregulated offshore operators and harming jobs and horseracing.
  • • Examples from the Netherlands and Germany suggest tax hikes can weaken channelisation and player protection in some markets.
  • • Former PM Gordon Brown supports the IPPR proposals; timing coincides with warnings that UK taxes may need to rise in the autumn budget.

Why should I read this?

Quick and blunt: this story stands at the crossroads of public finances, social policy and the gambling industry. If you follow regulation, betting business strategy or social policy, the IPPR’s figures and political backing could shape the autumn budget and industry rules. We’ve read the detail so you don’t have to — it flags who might win, who will lose, and where the real risks lie.