UK Treasury Committee Pushes for Higher Online Gambling Taxes

The latest Treasury Committee report, released on 7 November, calls for higher taxation on gambling products deemed to have a greater risk of harm, including online slots and casino games. Committee Chair Dame Meg Hillier condemned what she described as the industry’s “boldfaced claim” that gambling does not cause social harm. She said the impact of problem gambling on communities was “plain to see.”

The committee’s findings come at a critical time for the sector, with Chancellor Rachel Reeves expected to announce new fiscal measures in the upcoming budget. The report also challenged the long-standing argument that higher taxes drive consumers to unregulated gambling platforms, citing academic evidence showing no clear correlation.

Industry analysts, however, say the recommendations remain vague. Dan Waugh of Regulus Partners noted that it is unclear whether the committee wants Remote Gaming Duty (RGD) and Machine Games Duty (MGD) raised slightly or above the current top rate of 50%, which could cripple land-based venues.

The Betting and Gaming Council, led by CEO Grainne Hurst, responded by warning that further tax increases could undermine consumer protection, reduce Treasury revenue, and damage UK sports funding. The industry argues that tax policy should remain proportionate and evidence-based, given that problem gambling affects just 0.4% of adults according to NHS data.

With political and public sentiment hardening, the report represents another step toward tougher taxation and regulation in the UK gambling landscape. Operators now face growing uncertainty as the government weighs new fiscal strategies for the iGaming sector.