Should the Budget raise the tax on betting-shop gambling machines, even if some shops close?
Machine Games Duty on the Category B machines in betting shops, including fixed-odds terminals with a £2 maximum stake, is currently 20%. The Budget on 28 October is reported to be considering a rise, either to 25% or to 40%. A 2025 Budget raised online Remote Gaming Duty from 21% to 40% but left in-person gambling taxes unchanged. The Social Market Foundation estimates a 40% rate would raise £275m to £458m a year. Industry-commissioned EY modelling says it could close 690 to 1,470 of the 5,617 betting shops and leave the Treasury worse off.
6 Opinions
My reason for saying yes is because gambling is an addiction, like smoking. Government have done a number of things to stop us smoking, obviously losing revenue. Raising taxes on gambling will hopefully stop gamblers getting addicted, getting into debt, losing their homes and families. Nothing wrong with putting bets on, drinking, smoking and so on, it's that line where enjoyment turns into something that destroys families.
One of my first jobs after graduating was managing Southeast London branches of a nationwide chain of bookies. This experience made me somewhat anti-gambling, I saw some things in those factories of human misery. FOB machines are the absolute worst. One of the nicest regulars was a Chinese guy who was really good at picking horses but he just blew his winnings on the FOB machines. Signed a self-exclusion order eventually. IMO such industry externalities require tax & regs.
As with all tax rises, careful consideration on benefits (short term revenue) and dis-benefits (closed betting shops and overall loss in tax revenue) is needed, The Government should focus it’s efforts on cutting its excessive spending through rejecting asylum applications and reversing immigration.
One of the few taxes I'm in favour of... Online slots got hit with 40% duty in 2025, so why on earth are fixed-odds machines in betting shops still taxed at just 20%? When potential is £400m it's a no brainer surely
Tax is theft.