The UK Gambling Arena Avoids Expected Tax Increment in New Budget

The Budget's Highlights

The financial blueprint, marking the Labour government’s first in over a decade, seeks to raise £40 billion ($51.5 billion) to address a £22 billion ($28.3 billion) deficit, which Ms Reeves attributed to the previous Conservative administration. This strategy has stirred political debate, with the prior Prime Minister criticising Labour for economic distortion and deviating from their pledges.

However, the gambling niche avoided immediate tariff hikes. This move was welcomed by industry giants who argue that heavy taxation could drive customers to unregulated markets.

Key points of consideration include:

1. Levy freeze. GGR ranges are paused from April 2025 to March 2026, sparing the sector from anticipated increments.
2. Deferred reforms. The administration has announced plans to bring the Internet, television, telephone and radio betting under a single tax framework. However, any additional changes to fees within the niche are postponed to 2025.
3. Industry concerns. The state had considered raising remote gambling duty (RGD) from 21% to 50%, which is in line with suggestions from major analysis centres.

Industry Leaders’ Comments

Dominant sector figures, including executives from the Betting and Gaming Council (BGC) and Entain, expressed concerns that drastic tax hikes would be damaging. Operators must adjust to White Paper requirements and absorb a newly implemented £100 million ($128.7 million) annual charge to support investigation and therapy for responsible gaming.

BGC representatives expressed relief, viewing the contribution freeze as vital for maintaining sector stability while implementing regulatory changes.

An Eilers & Krejcik Gaming’s senior VP notes that a modest fine rise may be unavoidable in coming years, especially as the UK online sports wagering taxes remain low compared to wider European standards.

The current freeze allows the UK iGaming operators to focus on adapting to regulatory shifts and compliance requirements without immediate tariff burdens, though future reforms are likely on the horizon.