All-Party Group Welcomes Increase in Online Gambling Tax Rates

The All-Party Group on Harm Related to Gambling has today welcomed the Chancellor’s decision to increase tax rates on online gambling. The Group described the measure as a “positive and necessary step” toward addressing the growing social and public health costs associated with online betting and gaming across the UK.

Speaking after the Budget statement, Philip McGuigan MLA, Chair of the APG said: “We welcome the Chancellor’s decision to increase tax rates on online gambling. This is a meaningful acknowledgment that online gambling continues to generate significant harm for individuals, families, and communities, and that fiscal measures must play a role in addressing those harms.”

The APG has consistently called for stronger taxation as one lever to reduce gambling-related harm, arguing that the sector’s current contribution falls far short of the true economic and social burden caused by online products. Although today’s announcement represents progress, it also highlights the need for the UK Government to go further.

“While the increases announced today are an important step forward, the new 40% tax rate on online gaming could and should be higher,” Philip McGuigan MLA continued. Earlier this year, our Group proposed a tax rate of  50%, given online gaming, including slots and casino games, corollate with the highest levels of harm.”

Despite calling for more ambitious reform, the APG stressed that the changes set out in the Budget will nonetheless contribute to offsetting some of the substantial costs that online gambling imposes on public services. Research has repeatedly documented the links between harmful gambling and increased demand for health, social care, and criminal justice interventions.

Robbie Butler MLA, Vice-Chair of the APG said: “This tax increase will go some way toward mitigating the wider social costs generated by online gambling harms. While taxation alone cannot solve the problem, it is essential that the fiscal framework reflects the realities of harm. Today’s move is a step in the right direction.”

The APG also welcomed the Chancellor’s decision not to harmonise the tax rates across different forms of online gambling. The Group has argued that tax policy should be aligned with levels of risk, noting that certain gambling products, particularly online slots and fast-paced casino games, carry significantly higher harm potential.

“Not harmonising taxation is the right decision,” said Robbie Butler MLA. “It acknowledges what the evidence clearly shows: some forms of gambling are more harmful than others and should therefore attract higher tax. A one-size-fits-all approach would have ignored the stark differences in risk profiles across products.”

The APG emphasised that today’s announcement carries particular significance for Northern Ireland, where online gambling remains unregulated due to outdated legislation. While the rest of the UK continues to benefit from strengthened regulatory frameworks, Northern Ireland’s laws have not kept pace with technological change or the expansion of online gambling platforms.

Northern Ireland also faces the highest rate of problem gambling in the UK, with 3% of the adult population classified as problem gamblers according to the most recent Gambling Prevalence Survey. It is also the only part of the UK or Ireland without an independent gambling regulator.

Philip McGuigan said: “This decision is especially important for the north. Our outdated laws mean online gambling operates here without proper oversight, while harm levels remain the highest across these islands. The increased taxation is an important step, but what we urgently need is modern legislation and an independent regulator to protect our communities.”