The UK gambling industry has reported a significant financial upswing, winning an extra £1 billion from punters in the year to March, according to new data from the Gambling Commission.
This substantial increase is expected to fuel demands for the Chancellor, Rachael Reeves, to announce higher betting taxes in the upcoming budget.
Breaking Down the Numbers
Official figures reveal that betting companies generated a total of £12.6 billion from services excluding lotteries in the latest 12-month reporting period. This marks a sharp 9.3% increase from the £11.5 billion recorded the previous year.
The surge was largely driven by the online casino sector, where operator winnings from players jumped by almost 15% to £5.0 billion, up from £4.4 billion. This means the industry's takings from online casinos are now a staggering 55% higher than they were at the start of the COVID-19 pandemic in 2020.
Political Pressure and Industry Lobbying
This financial boom has intensified calls from campaigners, including former Prime Minister Gordon Brown, for a rise in the online gaming duty. Online casino games are frequently criticised as one of the most addictive forms of gambling available in the UK.
However, the gambling industry has been actively lobbying the Treasury in an apparent effort to dissuade the government from imposing significant tax hikes. The industry has powerful allies, with The Sun newspaper running a "Save Our Bets" campaign.
Joanne Whittaker, the boss of bookmaking chain BetFred, has warned that even a modest increase to the machine games duty would have a "devastating impact" and could lead to shop closures, ultimately reducing the industry's overall tax contribution. BetFred has previously threatened to close all 1,287 of its high street betting shops if taxes are raised.
Wider Industry Performance
The data also highlighted growth in other areas of the gambling sector. Adult Gaming Centres (AGCs) reported a 10% increase in winnings, taking £682.9 million from customers, up from £623.3 million the year before.
These centres have drawn criticism from anti-gambling groups for allegedly targeting poorer communities and for inadequately helping problem gamblers to self-exclude.
With the budget announcement imminent, the debate over the social cost of gambling and its appropriate taxation is set to reach a new peak.
