This autumn’s budget presented by Rachel Reeves, the UK’s Chancellor, temporarily relieved the gaming niche: there was no tax increase for the industry. Nevertheless, the authorities are set to return to discussing this topic in 2025.
Fiscal Policy of the State: Expectations and Reality
This plan is the 1st from the Labour administration in around one and a half decades and includes a general fee growth of £40 billion to stabilise the economy. The Chancellor noted that the measures aim to cover the £22 billion deficit left by the Conservatives.
Ms Reeves refrained from increasing the burden on the gambling sector, freezing GGY bandings from April 1st, 2025, to March 30th, 2026.
The temporary protection from additional financial pressure was a supportive step for the industry amid regulatory changes.
Prerequisites for the Chancellor’s Decision
Speculation that the tax on remote gaming services could be uplifted by 29% to 50% has been fuelled by advice from think tanks, including the IPPR.
Gavin Isaacs, Entain’s Chief Executive, has previously warned the government of such a move’s potentially negative economic impact.
Industry frontrunners like the BGC's CEO have argued that a steep tax increase could push sphere representatives towards illegal markets. In Grainne Hurst's opinion, the segment is in a predicament regarding implementing the White Paper’s measures, which require £1+ billion. She also believes a novel £100 million yearly levy on studying and treating ludomania would further burden operators.
Future of Taxation: Impact on the Gaming Sector
Despite the temporary relief for the industry, the authorities plan to transform the amusement duty system in 2025.
Currently, niche fees in the UK are levied on a tiered model:
- 15% — for general wagering receipts;
- 21% — for remote gaming operations.
As part of the structure’s simplification, the executives intend to combine taxation and set a single tariff for services such as web, telephone, radio and television RMGs.
Eilers & Krejcik's Senior VP commented on possibly increasing next-year financial obligations for internet gambling, noting that their growth seems inevitable. In Alun Bowden's opinion, the segment can cope with a moderate uplift, especially in the sportsbook niche.
The BGC’s representatives praised the final budget version. The organisation’s CEO said the primary authority has listened to the administration, taken a measured approach, and rejected initiatives that would have damaged the sector and threatened jobs.
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