UK gambling sector faces tax hike as survey estimates 1.4M problem gamblers

The UK gambling industry faces renewed scrutiny after Chancellor Rachel Reeves signaled plans to raise taxes on the £11.5 billion sector, just as the Gambling Commission released survey data estimating that 1.4 million adults in Britain may have a gambling problem.

Speaking at the Labour Party conference, Reeves said bookmakers and online casinos should be “paying more.” Her comments came ahead of the autumn budget and days before the regulator published its latest survey findings.

Former Prime Minister Gordon Brown has separately called for up to £3 billion  in additional duties from gambling operators to help fund the removal of the two-child benefit cap. Think tanks, including the Social Market Foundation and the Institute for Public Policy Research, have also proposed higher contributions from the industry. While industry observers expect taxes to rise, they anticipate an increase smaller than the level sought by Brown.

Survey findings and methodology

The Gambling Commission’s annual gambling survey of more than 19,000 people concluded that 2.7% of adults scored 8 or above on the Problem Gambling Severity Index. Applied nationally, that amounts to about 1.4 million people, more than the population of Birmingham.

The regulator had previously cautioned against extrapolating survey percentages to the wider population. After a review by a statistics expert, the commission removed that guidance, making the new survey its standard measure. A former polling format used by the commission had produced a much lower 0.4% estimate.

The latest data also reported higher problem gambling rates in deprived areas and in specific types of activity, including slot machines and in-play sports betting.

Industry response

The Betting & Gaming Council (BGC) has continued to use the earlier 0.4% estimate and questioned the regulator’s new figure.

“More than 22 million adults in Britain enjoy a bet each month and as the Gambling Commission today shows, the vast majority of people do so safely,” a BGC spokesperson said. “Our members take player protections incredibly seriously and have voluntarily contributed £170m to research, education and treatment programmes over the past four years alone to tackle problem gambling – in stark contrast to the illegal growing black market where 1.5 million Brits staked up to £4.3bn and which actively targets vulnerable customers.”

The BGC stated that the difference between the 0.4% and 2.7% figures “reflects different methodology.”

Commission and research findings

“This year’s findings deepen our understanding of consequences from gambling and provide crucial insight into risk profiles among those who gamble most frequently,” said Andrew Rhodes, chief executive of the Gambling Commission. “We strongly encourage operators to use this evidence to consider the risks within their own customer bases.”

Alongside its survey, the regulator published findings on product-specific risks. Research from the University of Glasgow showed that individuals who placed in-play sports bets at least once a week in the previous month were three times more likely to score above 8 on the problem gambling scale. High street slot machines produced even higher risk scores.

Concerns about slot machines have increased among policymakers, with proposals being considered to give local councils powers to prevent new venues from opening.