BonusFinder, an online casino comparison site, gives you the latest on the UK gambling tax updates. The gambling tax increase, recently announced as part of Chancellor Rachel Reeves’ November budget, will lead to a loss of jobs, potentially thousands, at bet365.
Former cabinet minister Sir Gavin Williamson mentioned the potential rise in job losses, led by an increase in iGaming taxes from their current rate of 21% to 40%, when he was speaking during a Budget debate in the House of Commons.
Williamson described the betting company as one of the most successful technology companies in the country and highlighted the fact that bet365 is the single largest private sector employer in his constituency of Stoke-on-Trent.
Budget tax increases
Increases in gambling taxes were widely expected in this year’s budget. Former Prime Minister Gordon Brown led the charge to increase levies raised against sports betting and gambling companies. Some called for all gambling taxes to be increased to as high as 50%.
Groups, including the Betting and Gaming Council, railed against claims that such a move could raise as much as £3bn for the UK economy. The horse racing industry, in particular, took umbrage with the claim that they could afford such increases.
Horse racing viewing and revenue have been in decline for several years, and in September, the industry staged a full one-day strike, cancelling all race meetings in the country in an unprecedented move.
In the end, horse racing was spared from the increases. Horse racing betting levies will remain the same, including online, in betting shops and at horse racing tracks.
Another source of betting shop income to miss out on tax rises was gaming machines. Digital gaming machines can make bookmakers a lot of money, and despite many fearing an increase, this didn’t materialise in Reeves’ budget.
However, while horse racing was spared, that wasn’t true of all betting and gambling.
Online sports betting will maintain its current taxation rate, but only until 2027, when rates will rise from 15% to 25%.
Meanwhile online casino gaming will be the hardest hit, however. From April 2026, the online casino tax will increase from 21% to 40%.
Potential budgetary consequences
The Government claims the changes will raise £1.1bn a year to add to the Government coffers. However, critics of the increases point to the likely loss of jobs and a drop in revenue across the industry as minimising any gains.
Stoke-on-Trent’s bet365 is one of the biggest gambling companies in the UK. The company employs around 4,000 people, with many of them working in Stoke-on-Trent: a low-income city.
Skybet recently announced it was moving its head office from the UK to Malta, and there are concerns that other companies could make similar moves. Furthermore, experts have suggested that tax increases could force players to the black market.
Consequences of the increased taxes means that legitimate companies will face bigger overheads, meaning they will not be able to meet the bonuses and prices offered by black market providers.
Meanwhile, players looking for the best bonuses will be forced to the unregulated black market, where play protection and safer gambling policies are less common.
