Taxes on Online Betting Must Reflect Associated Harms, Say MPs
The Government must act decisively against industry scaremongering and impose taxes on online betting games that correspond to the increase in harmful and addictive gambling behaviors, according to a report released today by the Treasury Committee.
Growth of Online Betting
Many enjoy gambling safely through activities like seaside arcades, bingo, and betting on races and football. However, the industry has a darker side. The rise of online betting games has accelerated recently, with the share of Gross Gambling Yield from remote gaming climbing from 12% in 2013/14 to 44% in 2023/24.
Harms from Online Gambling
Online betting encourages harmful, addictive, and high-frequency gambling that offers no benefits to individuals, families, or communities.
Committee Recommendations
- The Government should recognize that different gambling types cause varying degrees of harm and adjust taxation accordingly.
- The report challenges the industry's claim that gambling causes no social harm.
- Evidence was heard on both sides about concerns that higher taxes might push gamblers to the black market.
- The Government is advised to explore ways to combat black market gambling and consider additional anti-avoidance policies.
“Whether at a local racetrack or a seaside arcade, for many people, gambling is a fun pastime enjoyed with family and friends.”
Author's summary: MPs urge the Government to tax online betting more fairly to address the specific harms of addictive gambling while tackling black market challenges.