The Treasury select committee has urged Chancellor Rachel Reeves to ignore 'scaremongering' from the gambling industry and increase taxes on the most harmful products, including high-street slot machines and online casino games. In a report published as Reeves finalises her second budget, MPs accused firms of hiding 'insidious' products behind traditional betting activities such as horse racing.
The committee explicitly linked tax rates to addiction, recommending higher duties on fast-growing addictive segments. It echoed calls from thinktanks and former Prime Minister Gordon Brown, who suggested a £3bn tax increase to fund scrapping the two-child benefit limit. Industry sources believe Reeves may opt for a more moderate rise, raising between £1bn and £1.5bn.
During an evidence session, Betting & Gaming Council (BGC) chief executive Grainne Hurst denied that gambling causes harm. Committee chair Meg Hillier described it as an 'extraordinary moment' that left MPs 'jaw-dropped'. The report, published a week after Hurst's testimony, criticised the BGC's lobbying as 'staggering'.
Currently, multiple duty rates apply: 15% for general betting on sports, 21% for remote gaming, and 20% for machine gaming duty on high-street slots. The Treasury has considered harmonising these rates, but the committee rejected that approach, arguing it would not reflect differing risks. The BGC claimed higher taxes could push gamblers to the unregulated market and threaten 40,000 jobs, citing an EY report. However, the committee noted evidence from the SMF that found no international link between higher duties and increased illegal market activity.
