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Labour MPs Call For Gambling Tax Increase

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Over 100 Labour MPs have called for a tax increase on gambling and betting shops.

For betting shops, this has been remarked as disastrous.

A letter was sent to the Chancellor of the Exchequer, Rachel Reeves, recently by Labour MPs.

The letter was written by two members of the Gambling Reform All-Party Parliamentary Group (APPG), asking for a rise in tax. Beccy Cooper and Alex Ballinger from the group campaigned for the letter.

This comes soon after Prime Minister Keir Starmer is expected to announce formal plans to give residents the power to block betting and other shops from opening in local high streets. The initiative has not been formally announced yet, but is believed to be aimed at giving residents control back of their local high streets and to try to combat the rising political support for Nigel Farage’s right-wing party Reform UK.

What Did The Letter Say?

The main purpose of the letter is to call for a “targeted levy on online gambling,” and as a result, this involves betting shops. According to the APPG in a statement to the Racing Post, they claim MPs were writing in support of plans former Prime Minister Gordon Brown proposed.

These plans included raising the tax on online games like slots and other chance-based games from 21 percent to a whopping 50 percent! Similarly, Brown wanted to raise the tax on machines in betting shops from 20 percent to 50 percent. This aim would ensure that online and in-person gambling are taxed at the same rate.

However, the MPs urged that racing be left out of the tax and sports should be excluded and taxed on a different basis that understands the importance of its social and economic benefits.

Arguments for the rise in tax include the fact that betting operators online make lots of profits because they do not have many staff and sometimes operate out of the country or in offshore places to pay lower taxes.

Harshly, the letter also stated that spending on gambling doesn’t help the British economy much.

Also linked to the letter by Ballinger was the economic state of the country and families at this time. Ballinger said, “No child should grow up in poverty while gambling companies make record profits.”

In other words, Ballinger wants the gambling industry and their companies to pay higher taxes so more money can be spent on helping children and families in need.

Will Sir Keir Starmer Make Changes To Gambling Taxes?

It is hard to tell if the Prime Minister will make any significant changes to the current gambling industry. Increasing taxes to the rate proposed by the Labour MPs in the letter will not reflect well on the industry’s profits. However, it must be understood that iGaming is an industry in the UK that is not slowing down.

There are betting shops on every corner of English high streets, as well as thousands of UK-based online casinos. Will making the tax rates equal balance out profits? Will it have an impact on poverty and families in the UK?

If anything, the government should allocate more funding to areas of child welfare rather than taking it from UK businesses.

The Labour Party conference in Liverpool on Sunday is expected to shed more light on upcoming policies.

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