UK Gambling Revenue Hits $1.13B Amid Calls for Higher Taxes
The UK gambling industry pulled in an extra £1 billion ($1.31 billion) from punters over the past year, according to new figures from the Gambling Commission, a rise that is expected to fuel calls for higher betting taxes in Wednesday’s budget.
UK gambling industry
£1 billion
$1.31 billion
calls for
The data shows that betting companies made GBP12.6 billion ($16.6 billion) from services excluding lotteries in the 12 months to March, up 9.3% from GBP11.5 billion ($15.1 billion) the year before.
GBP12.6 billion
$16.6 billion
services excluding lotteries
up 9.3%
GBP11.5 billion
$15.1 billion
Much of that growth came from online casino games, whose gross gambling yield jumped almost 15% to GBP5 billion ($6.59 billion). That figure is now 55% higher than it was at the start of the Covid-19 pandemic.
gross gambling yield jumped almost 15%
GBP5 billion
$6.59 billion
55% higher
Online casinos have been singled out by campaigners, including former prime minister Gordon Brown, for being particularly addictive, prompting calls for higher taxes on these games.
Online casinos
former prime minister Gordon Brown
Highly Addictive Forms of Gambling Should Be Taxed More
Iain Duncan Smith, chair of a cross-party group studying gambling harm, said the profits were eye-catching. “Uniquely, gambling companies make their profits through highly addictive products, often from our most deprived communities,” he said.
Iain Duncan Smith
chair of a cross-party group studying gambling harm
“It is abundantly clear that more addictive forms of gambling like online casinos and machines in adult gaming centres should be taxed at a higher level to pay for the many social ills that they cause.”
Meg Hillier, chair of Parliament’s Treasury committee, added: “We believe that addictive online betting should face higher taxes than forms of gambling with cultural benefits, such as horse racing and bingo halls. It’s important that the government does not cave in to … industry scaremongering [about higher gambling taxes causing job losses].”
Meg Hillier
chair of Parliament’s Treasury committee
“Unfortunately, the fact that we are told the existence of gambling firms is on a financial knife-edge, while they simultaneously plough billions into advertising, does not come as a surprise.”, Hillier further said.
Lobby Against Tax Hike
The gambling sector has been lobbying the Treasury to limit tax increases ahead of Chancellor Rachael Reeves’ Commons speech. Some operators have threatened drastic measures if duties rise. Betfred, for example, said it would close all 1,287 high street betting shops, while Evoke, which owns William Hill, has floated shutting up to 200 shops.
Chancellor Rachael Reeves
Betfred
Evoke
William Hill
Other parts of the sector are also growing. Adult gaming centres reported a 10% rise in winnings, generating GBP682.9 million ($900.3 million) over the year. However, these venues have drawn criticism for targeting poorer areas and failing to support self-exclusion programs.
Adult gaming centres
10% rise in winnings
GBP682.9 million
$900.3 million
self-exclusion programs
The number of adult gaming centres fell slightly from 1,451 to 1,415, and the total number of gambling premises fell from 8,328 to 8,234.
The Betting and Gaming Council stressed that the figures don’t tell the full story. A spokesperson said: “These statistics also do not capture recent regulatory changes, which will have a major impact on growth and jobs, including a new GBP100 million ($131.8 million) levy to fund research, prevention, and treatment to tackle problem gambling and gambling-related harm, and new financial vulnerability checks introduced in February.
The council also emphasizes that ministers should make sure that the budget will not “impose measures that weaken the regulated sector” while strengthening the “unsafe” and “unregulated” black market.
