Rachel Reeves, the Labour Chancellor, is under scrutiny for declining to implement a potential £900 million tax increase on online casinos in her inaugural budget. The decision has sparked debate about Labour’s connections to the £11 billion gambling industry.
The proposed doubling of remote gaming duty (RGD) from 21% to 42% was originally suggested by the Social Market Foundation think tank and gained support from the Liberal Democrats. The anticipated revenue could have bolstered health and social care funding, yet the measure was notably absent from the £40 billion tax increases announced in the budget.
The UK’s existing 21% online gaming tax rate remains lower than comparable rates across Europe, the United States, Australia, and Canada. Liberal Democrat Treasury spokesperson Daisy Cooper expressed concern over the government’s decision to target family farms, GPs, hospices, and small businesses while appearing to shield gambling companies from increased taxation.
Labour’s relationship with the gambling sector has raised eyebrows. The party has received substantial donations from the Coates family, owners of Bet365, while Reeves’s constituency office accepted £30,000 from former gaming executives. Her long-standing friendship with Michael Dugher, who chairs the Betting & Gaming Council, has also drawn attention.
The Treasury has announced plans to consult on reforming remote gambling taxation next year, aiming to streamline the system and address potential loopholes. This development comes as the gambling industry continues to evolve and generate significant revenue in the British economy.
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