The British government and the gambling industry are again at loggerheads over taxation. A statement from former Prime Minister Gordon Brown sparked the clash this time.
The politician proposes to charge taxes up to 50% due to the need to raise funds to provide for people experiencing poverty. In particular, it is about reducing child poverty and abandoning the two-child benefit cap.
According to Brown, raising taxes on casinos and bookmakers could raise an additional £3-3.5 billion a year. This analysis was provided to the official by the Institute for Public Policy Research (IPPR), which also supported the initiative.
The reason for the attacks on the gambling industry is the so-called “socially harmful behavior.” Both government officials and some religious or business figures have repeatedly expressed this. Coupled with the casino’s considerable profits, this caused a social outcry.
On the other hand, there are concerns about the PR of politicians on the social benefits problem. Labour calls the two-child benefit cap harmful. Among many statements were public promises to cancel this initiative, brought in by the former administration run by the Conservative Party. However, real action never came, which caused public outrage and distrust.
The idea of raising taxes on gambling is not new. The last time they discussed this was in April 2025, when the government launched consultations on a new unified Remote Betting & Gaming Duty (RBGD) tax system.
To the prospect of these innovations, Grainne Hurst, CEO of the Betting & Gaming Council (BGC), reacted harshly, calling the review “utterly self-defeating” and stating that such a move “makes a mockery of their growth strategy.”
“BGC members contribute £6.8bn to the economy, generate £4bn in tax, and support 109,000 jobs, but this misguided approach can only lead to a downward spiral. The government should listen to business and sport, not crowd out growth, investment, and jobs from one of the few business success stories in the world in the UK.”
At the same time, this has led to concerns among legal gambling platforms about the rapid growth in popularity of offshore casinos.
Now it is coming true. Sites operating outside the jurisdiction of the UKGC have stepped up the race to win UK players. They claim to offer generous bonuses while bypassing restrictions and offering anonymity. They claim the gaming sites here are 100% legit and adhere to all safety principles.
However, some deliberately push players into the gambling pit. Thus, raising taxes does not diminish “socially harmful behavior,” because gambling addiction cannot be eradicated by economic pressure on trustworthy casinos.
It is worth mentioning that in 2001, the British authorities deliberately exempted gamblers from taxation and placed all fees on operators. This was done to promote the development of a legal industry in Britain and protect players from the tricks of dubious casinos. But current initiatives look like an attempt to choke legal business.
As a result, the British gambling industry falls victim to double standards. Before making a decision, the British government should look at the experience of other countries. For example, in Germany, an increase in gambling taxes has already caused a flight of players offshore.
In addition to the obvious risks, such an initiative also affects related markets: sports, media, etc. It’s about sponsoring sports clubs, a decrease in advertising revenue, a sharp salary drop for specialists in the IT and consulting industries, and other consequences.
To some extent, the officials and political scientists have sided with Gordon Brown. They emphasize the importance of attracting new funds to finance social programs. However, they note that market and social risks must also be considered. The discussion is still ongoing.