MPs have urged Chancellor Rachel Reeves to raise taxes on the most addictive forms of gambling — including high-street slot machines and online casino games — despite warnings from betting companies that the move could cost jobs and drive gamblers underground.
The Treasury Select Committee accused the £11bn gambling sector of hiding its most “insidious” products behind more traditional activities such as horse racing and seaside arcades.
Committee chair Meg Hillier MP described as “extraordinary” recent claims by Betting and Gaming Council (BGC) chief executive Grainne Hurst, who told MPs that gambling firms do not cause harm — a statement Hillier said made “everyone’s jaw drop”.
MPs want Reeves to impose higher duties on products linked to addiction, rather than harmonising the current tax structure. At present, rates range from 15% for general betting to 21% for remote gaming and 20% for slot machines.
The BGC has argued that a tax hike could lead to 40,000 job losses and a £3.1bn hit to the economy, claiming firms would pass costs to players and risk driving people to the unregulated market.
However, the committee cited research from thinktanks SMF and IPPR, which found no clear link between higher gambling taxes and growth of illegal betting markets overseas.
MPs urge Chancellor to hike taxes on gambling firms despite industry ‘scaremongering’
