UK gambling industry steps up outreach efforts amid tax hike dicussions

The UK gambling sector has launched an intensive summer lobbying campaign to head off potential tax increases, reports The Guardian, holding high-level meetings with political figures and hosting social events aimed at influencing lawmakers and advisers.

The Betting & Gaming Council (BGC), which represents major operators including high street bookmakers and online casino platforms, is opposing Treasury plans to harmonise the various rates of duty applied to gambling, a move that industry players fear could sharply raise their overall tax burden.

As part of the campaign, the BGC and Flutter Entertainment (owner of Paddy Power, Betfair and SkyBet) co-hosted a darts-themed evening attended by more than 100 Labour staffers and special advisers. The event was promoted via the Labour Staff Network and included a speech from BGC chief executive Grainne Hurst, a former Ladbrokes executive, as reported by The Guardian.

“The Labour staffers event was a great opportunity for us to talk about our ‘Big 180’ partnership with Prostate Cancer UK – built around the World Darts Championship – which has so far encouraged 350,000 men to check out their risk of developing the disease,” a Flutter UKI spokesperson said.

The charm offensive comes as the Treasury weighs reforms to existing gambling duties, including remote gaming duty, currently set at 21% for online operators, and general betting duty at 15% for high street bookmakers. The industry is concerned that the move could result in higher tax rates for digital gaming and other products.

The BGC’s chair, former Labour MP Michael Dugher, met Katie Martin, chief of staff to Shadow Chancellor Rachel Reeves, and was “in touch” with Reeves, according to internal emails seen by The Guardian. The BGC also briefed Labour MPs, including Jo Platt, Gareth Snell and Adam Jogee, and met sports minister Stephanie Peacock.

The lobbying push has drawn criticism from anti-gambling campaigners and some Labour politicians who are calling for tighter regulation. Dawn Butler, Labour MP and prospective candidate for London mayor, has submitted a motion calling for local councils to be given greater powers to block the spread of betting shops in deprived areas.

“Nearly one person a day dies by suicide linked to gambling addiction. This is a public health crisis, and it’s time our planning laws reflect that and stop these gambling companies from preying on communities that are often vulnerable and deprived,” Butler said, as per the report.  

The horse racing industry has also raised concerns about tax harmonisation, warning that higher betting levies could further damage its already strained finances. According to one source, some in racing have signalled they would not oppose steep hikes on online casinos, provided the racing sector is spared.

The Social Market Foundation is preparing modelling scenarios for how much revenue could be raised by adjusting gambling taxes. One option reportedly under consideration would lift the tax on online casino games and slots from 21% to as high as 35%. A more aggressive proposal - rejected last year - would have doubled taxes on the gambling products described as most harmful to 41%.

“It is entirely common and appropriate for trade bodies like the BGC to routinely meet with ministers, shadow ministers and MPs as well as officials and advisers across government. All donations and hospitality are consistent with the parliamentary and other rules and are fully declared and transparent,” a BGC spokesperson said.

The UK gambling sector generated £15.6 billion ($20.80 billion) in revenue from British customers in 2024, of which £11.5 billion was retained by betting and gaming companies. The industry is expected to contribute £3.6 billion ($4.80 billion) in gambling duties this year.