Online casino gaming is currently undertaxed by the UK - compared to other sectors and other countries. Ahead of the Autumn Budget 2024, this report makes the case for increasing the tax on online casino gaming, and explores public appetite for such a move.
New polling commissioned for this report shows that over half of Britons (52%) believe the government should increase tax on online gambling. When asked to rank which taxes should be raised by the government, three-quarters of people said that gambling duty was their priority, above income tax, VAT, inheritance tax, and duties on fuel, alcohol, and tobacco.
Online gambling is linked to higher rates of harm. This harm carries a fiscal cost which the Office for Health Improvement and Disparities has estimated at over £1 billion.
The report argues that online casino gaming is currently undertaxed by the UK. There are several reasons for this:
- Unlike most other goods and services in the UK, gambling does not attract VAT.
- Gambling can lead to harm, which the government has shown creates fiscal costs for society. Online gambling, such as slots, have a higher incidence of harm
- Many remote gambling operators avoid taxes by basing parts of their operations offshore, meaning they do not pay UK corporation tax
- British tax rates are often lower than those in other countries – in some European markets, tax on remote slots is closer to 40%, and in some US states it is over 50%
This report makes the case for doubling the tax on Remote Gaming Duty, from 21% to 42% – a rate which could bring in as much as £900 million to the Exchequer.
