Fri, 07 Nov 2025

Fri, 07 Nov 2025 Betting firms 'scaremongering' over tax rises, say MPs

Rachel Reeves has suggested that she could increase taxes on online bets in the budget.

* A committee of MPs has advised the government against "caving" to pressure from the gambling industry over a potential tax rise on online betting games.
* The Treasury committee report suggests taxing online betting at a rate that reflects its harm, and rejects the industry's claim that it causes no social ills.
* Online betting can promote addictive behaviours and is extracting large amounts of money from vulnerable individuals, according to the report.
* The gambling industry pays extra taxes in addition to not paying VAT on bets, but punters' winnings are not taxed.
* Chancellor Rachel Reeves has suggested that gambling firms could pay more tax, and nearly a quarter of Labour MPs have signed a petition urging her to hike taxes on gambling companies.
* The industry is warning of the potential loss of thousands of jobs if taxes are increased, with 300 of Betfred's shops currently losing money.
* An increase in taxation could enable the government to lift the two-child benefit cap, according to Labour MPs.
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