Britain\u2019s biggest bookmakers have warned a \u00a31.1 billion online gambling tax raid will hit profits, deter investment, put jobs at risk and drive consumers to the black market.<\/p>\n
In her second budget Rachel Reeves announced measures to lift remote gaming duty, which applies to online casino games, to 40 per cent from 21 per cent, next April in an attempt to tackle a segment of the gambling industry she said was \u201cassociated with the highest levels of harm\u201d.<\/p>\n
A new remote betting rate will also come into effect in April 2027, raising the level at which online sports betting, excluding horse racing, is taxed to 25 per cent, from 15 per cent. The tax increases are expected to raise an extra \u00a31.1 billion annually for the Treasury by 2029-30. <\/p>\n
While industry leaders welcomed the chancellor\u2019s decisions to scrap bingo tax, spare high street betting shops from paying higher taxes and additional land-based duties, they warned that \u201cexcessive\u201d online tax increases would be highly damaging for the economy and drive players to \u201cillegal, unregulated operators with no player protections\u201d.<\/p>\n
The Betting and Gaming Council said: \u201cMassive tax increases for online betting and gaming make them among the highest in the world, and are a devastating hammer blow to tens of thousands of people working in the industry across the UK, and millions of customers who enjoy a bet.\u201d<\/p>\n
Flutter, the owner of Paddy Power and Betfair, warned that the budget tax increases will result in a $320 million (\u00a3242 million) hit on adjusted profits next year rising to $540 million (\u00a3408 million) by 2027. <\/p>\n
Evoke, the gambling group behind William Hill, warned that lifting remote gaming duty to 40 per cent would ultimately reduce the amount of tax generated by the UK gambling industry and \u201creduce the commercial rationale for licensed operators such as Evoke to invest in the UK market\u201d. Evoke will incur between \u00a3125 million and \u00a3135 million in annual costs from 2027 because of the tax rises, it warned, as it withdrew its medium-term financial targets. <\/p>\n
\u2022 Our betting shops are sanctuaries. I worry for the men if we close<\/a><\/p>\n Most gambling stocks, which have been battered in recent months by speculation around potential tax increases, fell sharply before the chancellor\u2019s speech after the accidental early release of the Office of Budget Responsibility\u2019s forecasts confirmed that the sector would face higher taxes. <\/p>\n However, some stocks such as Rank, the Mecca Bingo owner, jumped 10 per cent after Reeves<\/a> announced the scrapping of bingo duty. Shares in Entain, the FTSE 100-listed group behind Coral and Ladbrokes, improved 3.4 per cent and Playtech, the gambling technology firm, rose 5.7 per cent. Shares in Evoke, which analysts at Investec believe will be the hardest hit by the tax rises, ended the day 18.3 per cent lower.<\/p>\n Entain said the move to disproportionately increase gambling taxes \u201cwill not only have a detrimental impact on our industry but also heightens the risk for customers\u201d.<\/p>\n