Think tank proposes new gambling tax expected to raise £450m a year

30 June 2026 , 13:30

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Think tank proposes new gambling tax expected to raise £450m a year

A call to hammer Britain’s betting shops with a fresh tax raid has sparked warnings thousands of jobs could be put at risk. 

Labour has been urged to increase Machine Games Duty on high-stakes slot machines, claiming it could raise up to £450million a year for the Treasury. 

The Social Market Foundation think tank wants a new 40 per cent tax band for Category B gaming machines, arguing they are linked to higher rates of problem gambling. 

But industry bosses last night warned the move would leave many high street bookmakers, bingo halls and casinos financially unviable. 

They fear higher taxes would force venues to shut, destroy local jobs and drive more gamblers towards the black market. 

A Betting and Gaming Council spokesperson said: “Betting shops, bingo clubs and casinos support local jobs, help keep high streets alive and provide valued community spaces for millions of adults.

“A further increase in Machine Games Duty would put venues and jobs at risk while driving more customers towards the growing illegal gambling market.”  

Despite increasing gambling taxes, Chancellor Rachel Reeves did not increase Machine Games Duty on physical gaming machines at the Budget. 

The changes mean remote online gaming duty will rise from 21 to 40 per cent, while online sports betting — excluding horse racing — will go up from 15 to 25 per cent.

The country’s economic watchdog warned the Treasury would miss out on £500million of tax revenue from the move because so many people would switch to the illicit market.

Since the raid was announced, gaming giant Bet365 pulled out of sponsoring two races at the Cheltenham Festival.

And illegal betting now makes up nine per cent of the UK market — a near tripling since 2022.

Emma Davis

Deputy Editor