Online betting companies are set to face an increase in taxes aimed at addressing issues related to problem gambling, while bingo establishments are set to benefit from recent changes. Chancellor Rachel Reeves has announced that the tax rate for remote gaming will jump from 21% to 40% starting in April next year, marking a significant increase. The move is expected to generate additional revenue of £1.1 billion annually by 2029/30, according to the Office for Budget Responsibility.
Additionally, a new general betting duty rate of 25% will be introduced for online gambling from April 2027. Notably, horse racing will be exempt from this new rate, ensuring that bets on horse races will remain unaffected by the 25% remote Betting Rate.
On the other hand, bingo halls will see a positive change as the 10% duty that currently applies to the game will be eliminated. Former Labour Prime Minister Gordon Brown has advocated for higher taxes on the gambling industry to address undertaxed profits, suggesting that an increased levy could help lift 500,000 children out of poverty.
The Treasury has emphasized the importance of raising taxes on online gambling while safeguarding face-to-face gambling activities, such as bingo halls and horse racing. Dame Meg Hillier, chair of the Treasury Select Committee, praised the decision to align tax rates with the harm caused by remote betting, particularly in highly addictive casino games.
Adam Rivers, managing director of Alvarez and Marsal’s global betting and gaming practice, acknowledged the impact of the tax changes on the online sector, noting the positive implications for land-based bingo operators. Brant Dunshea, acting chief executive of the British Horseracing Authority, welcomed the government’s decision to maintain the horserace betting duties, recognizing the significance of racing as a national asset and the support it provides to jobs across the country.