Before the Autumn budget, there were suggestions that the government could raid the gambling sector for an additional £3 billion in tax, plugging a substantial financial hole in the nation’s finances. It raised some serious concerns among UK gambling operators, and was enough to tank the shares of publicly-listed companies like Entain and Flutter.
However, it seems that the industry needn’t have worried. The budget was announced, and there were no cuts for the gambling industry.
What Did the Budget Say About the Gambling Industry?
Despite the concerns about proposed rate changes, the government spoke very little about the gambling industry. The only thing they said was that the bands for gross gaming duty would be frozen until March 31, 2026. So, gambling operators had a bit of a reprieve and don’t have to worry about significant changes taking effect for a couple of years at least.
Good News…For Now
Following the budget, shares in major gambling operators jumped by several percentage points as faith in the industry was restored. However, there are still concerns that changes could come in the future.
It seems that the government is caught between a rock and a hard place. On the one hand, they want to squeeze more tax money out of this incredibly lucrative industry, but at the same time, the industry supports thousands of jobs directly and countless more indirectly. Online casinos and sportsbooks generate huge sums in tax, hire large teams, and spend hundreds of millions on advertising, content, and more, all of which feeds the economy.
An additional tax could maintain that flow of money while giving the government a higher share, but it’s just as likely to send a lot of companies fleeing for more lucrative and less-taxed countries, including burgeoning markets in North America and Latin America.
We have already seen many major operators cut ties with the UK. Mansion Casino closed its doors last year, and we have also seen a series of recent closures across the DragonFish network. The UK online sector has always been one of the most lucrative, with many operators setting up shop here. But with more relaxed markets opening across the United States, that’s no longer the case. If the regulations are too strict and the taxes too high, many more will jump ship and leave UK gamblers worse off.
What Did the Budget Mention?
Although the gambling industry wasn’t touched, a few other usual suspects were hit hard in the Autumn budget. From October 2026, there will be a one-off charge of £2.20 on 100 cigarettes or 50 grams of tobacco, as well as new rates on vaping products.
One of the biggest announcements is that business rate relief will drop from 75% to 40%. According to the Music Venue Trust (MVT), this move will place over 3500 grassroots venues at risk, potentially resulting in the loss of tens of thousands of live music acts and further weakening an industry that is still reeling from the effects of COVID.
Increases in capital gains tax and the national minimum wage were also announced.
