Chancellor Rachel Reeves has argued gambling operators “should pay their fair share” ahead of a widely expected tax hike in the autumn budget.
In her speech at Labour’s annual party conference in Liverpool, Reeves all but confirmed a rise in gambling tax will soon be set in stone.
The 46-year-old told ITV: “I’m the chancellor who set up the review of gambling taxes. No other chancellor has done that, because I do think there’s a case for gambling firms paying more.
“I talk to a number of businesses from all sectors of the economy including the gaming sector. On a personal level I have never bet in my life on anything, but they make an important contribution to the economy.
“But they should pay their fair share of taxes and we will make sure that happens.”
‘I do think there’s a case for gambling firms to pay more,’ said the chancellor when asked if she would consider increasing the taxes gambling firms pay
‘They should pay their fair share of taxes, and we’ll make sure that that happens’ pic.twitter.com/iNPyki9EVN
— ITVPolitics (@ITVNewsPolitics) September 29, 2025
Former Labour Prime Minister, Gordon Brown, called on the government to raise gambling taxes in order to prevent a “social crisis.” MPs believe higher duties on the industry can fund scrapping the two-child benefit cap, which restricts child tax credit and universal credit to the first two children in most households.
Online gambling is currently taxed in two different categories – a general duty for racing and pool betting taxed at 15% of gross profit and a remote gaming duty for casino games and slot machines taxed at 21%.
Reeves is likely to harmonise gambling tax into a single rate with fears it could be set at 30%. The British Horseracing Authority believes this could cause irreparable damage to its sport, anticipating losses of up to £160 million a year.
Earlier this month all scheduled horse racing in Britain was cancelled in a strike against the proposals, with meetings abandoned at Uttoxeter, Lingfield, Kempton and Carlisle in a move that cost the industry £700,000.
The Institute for Public Policy Research (IPPR) has argued raising gambling taxes could generate an extra £2.9 billion in revenue within the first year and £3.2 billion by 2030, however analysts have countered that and fear hikes could actually reduce government income.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
