Chancellor Rachel Reeves’s Budget offered some reprieve, confirming no immediate increase in gambling duties for the betting and gaming sector.
Yesterday, the Labour Party revealed its first UK Budget in over a decade and a half, introducing a significant £40 billion ($52 billion) in tax increases aimed at closing a £22 billion “black hole” that, it claims, was inherited from the former Conservative Government.
There were mounting expectations that the gambling industry could face substantial tax hikes, with think tanks proposing a potential £3 billion increase on the sector. In anticipation, leaders like Betting and Gaming Council CEO Grainne Hurst and Flutter Entertainment CEO Peter Jackson voiced immediate concerns, cautioning against additional tax pressures on the industry.
However, Chancellor Rachel Reeves’s Budget offered some reprieve, confirming no immediate increase in gambling duties for the betting and gaming sector. The only direct reference to the industry was the decision to freeze gross gaming yield bandings for gaming duty from 1 April 2025 to 31 March 2026, with a mention that consultations next year may consider a unified tax for remote gambling.
The news sparked a favorable response in the markets. As Reeves began her speech at 12:30 PM UK time, Entain’s shares were at 720.80 GBp, jumping to 765.08 GBp (up 6.1%) by 2:32 PM. Flutter saw a 5.9% increase to 18,300.00 GBp, The Rank Group surged 8.1% to 89.96 GBp, and Evoke leaped 9.8% to 58.00 GBp, all within a few hours of the announcement.
Reflecting on the Budget, BGC CEO Grainne Hurst stated:
“We welcome today’s Budget and its commitment to not increase gambling duties on the regulated betting and gaming sector. We have been clear, any duty rises now would have hit customers, prevented growth, risked jobs, and bolstered the unsafe, unregulated gambling black market.
“Government has listened to the BGC and our members, got the balance right, and rejected calls from anti-gambling prohibitionists seeking to threaten jobs and growth. With policy for the sector already set, our members can look to support the Government’s ambitious growth agenda, generating tax, jobs, and investment across the nation while continuing to support sports like horseracing.
“While there have been no rises in gambling duties, we will study the impact that increased Employers’ National Insurance Contributions will have on BGC members, particularly smaller operators like independent bookmakers and land-based leisure operators, like casinos.”
The Labour manifesto had previously expressed an intention to collaborate with the gambling industry to elevate standards in responsible betting and gaming. Today’s Budget appears to echo that commitment, opting for a cautious yet supportive stance toward the sector’s growth and contribution to the UK economy.