Labour MPS urge Rachel Reeves to increase gambling taxes

The topic of gambling taxation does not go away as the UK Chancellor is being pressured to increase gaming duty.

More than 100 Labour MPs have urged Chancellor Rachel Reeves to increase taxes on gambling operators in the upcoming Budget on November 26. 

The call was made in a joint letter that primarily pressed for the removal of the government’s two-child benefit limit but also highlighted the potential for higher gambling taxes to raise additional revenue.

The MPs argue that proceeds from an increased levy could be directed towards social welfare. Current UK gambling taxation includes general betting duty, remote gaming duty and machine games duty, typically applied as a percentage of operator gross profits.

Critics warn that any sharp rise could accelerate the decline of high street betting shops, which have already been hit by falling footfall and competition from online gambling. Last month, the horse racing industry in the UK went on strike to protest against potential increases. 

Industry reaction

Former Prime Minister Gordon Brown was the first person to call for an increase, suggesting that remote gaming duty increases from 21% to 50% and general betting duty from 15% to 25%. 

The UK gambling market is one of the most heavily regulated in Europe, with measures such as affordability checks, stake limits and advertising restrictions introduced in recent years. 

An increase would still not be as contentious as it would be in the US in 2026, as Donald Trump's controversial Big Beautiful Bill comes into effect, which would potentially tax people on money they did not win. It seems that the discussion of gambling and taxation is going to be much discussed globally for the foreseeable future.