The figures, which show a 15% rise in revenue from online casino players compared to the previous year, arrive as pressure builds on the government to increase taxation on the sector ahead of the November 26 autumn budget.
Online Casino Revenue Drives Growth
Online casino operations continue to dominate the UK gambling market, with the sector generating £4.4 billion in gross gaming yield during the 12-month period. Within this segment, online slots games accounted for £3.6 billion of total revenue.
The substantial growth in online gambling comes as the Treasury Select Committee has urged the government not to “cave in to industry scaremongering” regarding proposed tax increases. In a report published ahead of the budget, MPs argued that taxes on the gambling industry should properly reflect the social harm caused by certain forms of betting.
Calls for Higher Taxation
The Institute for Public Policy Research has proposed increasing Remote Gaming Duty from the current 21% to 50%, alongside similar increases for machine gaming. The think tank estimates these changes could generate an additional £3.2 billion annually for the Treasury.
Dame Meg Hillier, chair of the Treasury Select Committee, stated that online gambling has had a severe effect “on the lives of too many people and the lives of those around them.”
More than 100 Labour MPs have publicly supported gambling tax increases, with Labour MP Alex Ballinger commenting on the industry’s £2 billion annual advertising expenditure: “Perhaps gambling firms should think about cutting back on adverts that nobody wants to see before pushing back against paying fair taxes on their vast profits particularly given the harms they cause.”
Industry Pushback
The Betting and Gaming Council has strongly opposed tax increases, with CEO Grainne Hurst warning that “punitive tax rises of up to 50% on online gaming” could achieve “the exact opposite” of their intended purpose.
Analysis commissioned by the gambling industry suggests that higher taxes could put 40,000 jobs at risk, divert £8.4 billion in stakes to the illegal market, and reduce the sector’s economic contribution by £3.1 billion.
Some operators have indicated they would pass increased tax costs to customers through worse odds. Per Widerstrom, CEO of William Hill parent company Evoke, stated the company plans to adjust odds for customers to offset potential tax rises.
Regulatory Context
The debate over gambling taxation occurs within a reformed regulatory framework following the government’s 2023 White Paper. Recent changes include mandatory online slot stake limits of £5 per spin for adults over 25 and £2 per spin for those aged 18-24.
“We saw it again when the FOBT legislation was brought in… it didn’t close all the shops. It is a bit of scaremongering.”
Stewart Kenny, co-founder of Paddy Power, dismissed industry warnings about black market growth, noting similar predictions when Fixed Odds Betting Terminal stakes were reduced proved unfounded.
The Treasury Select Committee recommended that the government “sharpen the differentiation” between land-based gambling related to horse racing and online casino operations, which promote “harmful, addictive, high frequency betting.”
Remote betting generated £2.4 billion in gross gaming yield during the period, with football betting leading at £1.1 billion, followed by horse race betting at £771.1 million.
The Chancellor is expected to address gambling taxation in the November 26 budget announcement.
Source: The Guardian
