Parliamentary Committees and Public Enquiries
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Do not cave in to industry scaremongering – taxes on online betting games must reflect the harms they cause say MPs

The Government must be bold in the face of industry scaremongering and tax online betting games at a rate which reflects the growth of harmful and addictive betting practices, says a report published today by the Treasury Committee.

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Many people safely enjoy various forms of gambling, ranging from seaside arcades and bingo through to betting on the races and football. However, there is another side to the industry. 

The shift towards online betting games has picked up pace in recent years. The proportion of the Gross Gambling Yield associated with remote gaming has risen from 12% in 2013/14 to 44% in 2023/24. 

Online betting games can promote harmful, addictive, high frequency gambling that brings no benefits to people, families and communities. The Committee is urging the Government to more sharply recognise that different types of gambling inflict different levels of harm and say this should be reflected in its approach to taxation.  

In its report, the Committee rejects the industry’s assertion that gambling causes no social ills. 

The Committee also heard evidence to both support and challenge the gambling industry's concern that increased taxation could drive more customers to the black market.

It recommends that the Government should examine how to tackle any black market gambling and consider whether additional anti-avoidance measures are needed. 

Chair comment

“Whether at a local racetrack or a seaside arcade, for many people, gambling is a fun pastime enjoyed with family and friends. But, we heard that the industry is hiding its more insidious parts behind the friendly facade of its traditional, cultural forms.

"For too many people, the highly addictive and harmful nature of online betting games has seriously impacted their lives and the lives of those around them.

"The impacts of problem gambling in our communities are plain to see, and the industry’s boldfaced claim to our inquiry that it does no social harm is staggering.

"Online betting games are extracting huge amounts of money from people who have been funnelled into the most addictive, harmful corners of the industry via their love of sports, or the occasional game of bingo.

"We are urging the Government not to cave in to industry scaremongering and to tax online betting games at a rate that reflects the level of harm they inflict.”

Further information

 

Channel website: http://www.parliament.uk/

Original article link: https://committees.parliament.uk/committee/158/treasury-committee/news/210100/do-not-cave-in-to-industry-scaremongering-taxes-on-online-betting-games-must-reflect-the-harms-they-cause-say-mps/

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