The tax increase on gambling in the UK is now set to go ahead after former Labour Party sponsor John Caudwell and former Prime Minister Gordon Brown pushed for closer scrutiny of gambling operators and their revenues. However, experts from the economic sector warn that high taxes and strict regulations on gambling halls could backfire, as rising taxes could lead players to try their luck elsewhere, namely, on the internet.
Gambling expert Matt Bastock and casino expert Wilna van Wyk confirm that there are indeed licensed and reputable online providers, such as the CasinoBeats recommendations for UK players. With officially recognized licenses, these establishments focus on trust, fairness, and user protection. According to Bastock, CasinoBeats recommends establishments that offer secure payments and whose games are regularly tested. However, industry experts warn that it is not always easy to find reputable providers.
The Adam Smith Institute (ASI) has expressed concern that: “Strict regulations and taxes on adult gaming centers (AGCs) are leading to a decline in the safe, personal gambling sector and pushing consumers to the black market.” The tax increases could have drastic consequences not only for players but also for the economy. According to research by the ASI, revenue from gambling operations has fallen by an alarming 23% since 2018. The ASI says that this decline is mainly due to strict regulations. In addition, gaming centers have to bear significantly higher costs than other industries. License and operating fees for adult gaming centers, for example, are 80% more than the highest alcohol license.
While brick-and-mortar gambling establishments are declining sharply, online gambling has generated £6.9 billion in revenue since 2018. The figures clearly show that it is not the Brits’ enthusiasm for gambling that is lacking, but rather the facilities. Less strictly regulated operators, who also pay less tax, can often afford to offer players better deals. Even if these internet offers cannot be accessed from the UK, users can reach them with the help of VPNs.
However, consumers are left to their own devices on such websites, whereas reasonable regulations in brick-and-mortar establishments help regulate gaming behaviour. According to a report by Racing Post, 9 percent of the British online gambling market is now controlled by unlicensed operators. These operators had already generated a turnover of £379 million in the first half of 2025. The fear now is that the upcoming regulations and tax increases could drive players even further into the arms of offshore sites.
The ASI stresses that physical gaming halls not only offer better consumer protection but also secure jobs and therefore have a positive impact on the economy. Together with the Institute of Economic Affairs (IEA), it is campaigning against plans to double tax levies on slot machines. Public Affairs Director Maxwell Marlow also describes the tax increase on secure betting facilities as nonsensical: “If the government wishes to treat gambling as a subject of public health, then adding higher taxes and regulatory hurdles to the safer forms of betting is irrational.”
Experts agree that strict regulations neither deter players from switching to competitors nor have a positive impact on players and the industry. However, supporting the industry and providing safe gambling options would not only protect users, but the potential for high revenues from the gambling sector would also benefit the economy.
It has been confirmed that Prime Minister Keir Starmer and Chancellor Rachel Reeves are preparing a budget package for November that could have a massive impact on the UK casino industry. While it was promised that the government would not raise income tax, national insurance, or VAT, gambling levies will likely see a significant hike.
Casinos, sportsbooks, and similar establishments have become a mainstream form of entertainment in the UK, and their popularity continues to increase. In addition, they contribute billions of pounds each year to the economy.
The emergence of online platforms has brought much innovation to the industry, allowing players to access their favorite games from home and enjoy the same experience they’d have in a brick-and-mortar establishment. Offshore sites, like those listed at ukslotsnotongamstop.com, have proven to be an even better alternative to locally-licensed ones, since they don’t have to abide by the same restrictions. This allows them to offer more accessibility, better bonuses, and other perks for players.
With an increase in gambling taxes looking highly likely at this point, UK-licensed casinos could face higher operational costs and might have to change how they structure their offers.
This came after former UK Prime Minister Gordon Brown called for a change in how casinos are taxed.
Calling on a report by the Institute for Public Policy Research (IPPR), he argued that remote casinos in the country pay significantly lower taxes than those in other European countries. Brown called for increasing the rate to 50%, adding that it could raise an additional £3.2 billion, which could then be redirected towards charitable causes, such as efforts to reduce child poverty.
Brown also said that increasing gambling taxes isn’t the only way to fund charitable causes, but called them a “straightforward choice”.
While increasing gambling taxes would increase the UK’s budget for other priorities, it could also put pressure on established operators who are already competing in a challenging market. In fact, the talk about a potential tax hike has caused some of their shares to go down in price. They have mostly stabilised since the initial drop, but have yet to fully recover.
The Betting and Gaming Council has warned the government that steep tax hikes would do more harm than good and called a potential move “economically reckless”. They argued that operators would have to cut back on investments and scale down promotional offers, which could result in players turning to other markets.
In addition, the British Horseracing Authority (BHA) said that such changes would impact how casinos operate and decimate jobs in the sector. The governing body is also set to cancel upcoming fixtures to express its opposition to the proposed tax changes.
While Chancellor Reeves has confirmed that the government is working on a budget package for autumn, she didn’t comment on Brown’s suggestions specifically, stating that all tax policies will be disclosed in the Budget.
No details about a potential tax increase have officially been released yet, and any policy change would likely follow a consultation period, allowing operators to present their views before a final decision is made.
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Red Wall Labour backbencher Jonathan Brash told GB News that Starmer should resign:
“I’m completely fed up about it, and I think it’s got to the point now where I genuinely think that, as far as the Prime Minister is concerned, it’s not a case of if, it’s when.”
