Northern Irish lawmakers join calls for British gambling tax hike
A group of assembly members argues that online casino gambling should be taxed at a higher rate.
UK.- As the British gambling sector braces itself for chancellor Rachel Reeves’ Autumn Budget this month, members of the Northern Ireland Assembly have weighed into the debate over betting taxation. The All-Party Group on Reducing Harm Related to Gambling (APG) has addressed an open letter to Reeves, urging her to adopt one of the most radical tax increases being proposed by Labour and Liberal Democrat MPs.
It’s supporting a proposal put forward by the Social Market Foundation (SMF) and the Institute for Public Policy Research (IPPR) that would raise Remote Gaming Duty from 21 to 50 per cent, machine games duty from 20 to 50 per cent and general betting duty from 15 to 25 per cent.
The group argues that Labour has so far failed to deliver on its manifesto pledge to reduce gambling harm, stating that “the evidence clearly shows that remote gaming products, such as online slots and casino games, are far more harmful than remote betting.” It argues that the proposed tax rise could generate £2bn annually for the Treasury while discouraging harmful gambling behaviour.
The group also expressed opposition to a previously mooted plan to merge three existing gambling taxes, Remote Gaming Duty (RGD), General Betting Duty (GBD) and Pool Betting Duty (PBD), into a single tax.
The letter states: “The British Government should not be seeking to harmonise the rate at which these types of remote gambling are taxed. It should instead use the upcoming Budget to increase the tax rates on remote gambling to offset the societal costs of the harms associated with it, which are estimated to cost the Exchequer in excess of £1bn annually.”
It concludes: “Reject the proposals to harmonise tax rates on remote gambling and use your upcoming budget statement to introduce appropriate tax increases on the industry. To do so would serve to reduce the harms associated with the activities of the highly profitable remote gambling industry and raise much needed additional revenue.”
Philip McGuigan, Sinn Féin MLA and chair of the Gambling Harm Reduction APG, stated: “Remote gambling, and in particular online gaming and slots, is causing untold harm to individuals, families and communities here. It is unacceptable that these highly addictive products could be taxed at the same rate as less harmful gambling activities, like betting on horse racing. The statistic that we have the highest rate of problem gambling is deeply concerning and urgent action is needed.”
He added: “We are calling on the British Chancellor to reject these proposals to harmonise tax and instead use the upcoming Budget to increase taxes on the remote gambling industry. This would protect people, reduce harm, and raise much-needed funds for public services.”
The Treasury Committee recently gave its support to calls for a rise in gambling tax in Britain, making the announcement of a change on November 26 all the more likely. Meanwhile, Treasury sources have suggested that the plan to merge gambling taxes id now off the table amid opposition from politicians and the horseracing sector, which argued that online casino games should face a higher tax burden than sports betting.
Northern Ireland does not come under British gambling legislation, and the territory still lacks any formal regulatory framework for online gambling. The Betting, Gaming, Lotteries and Amusements (Amendment) Act of 2022 was intended as the first phase of the modernisation of gambling regulation in Northern Ireland, but it does not consider online activities.
