MPs Warn Gambling Tax Rises Could Strengthen Black Market Activity
Published on by Zena Grantham
Concerns over illegal gambling and job losses were raised in Parliament this week as MPs debated UK gambling tax rises, despite broad cross-party support for higher tax duties for licensed operators.
In November 2025, discussions followed the chancellor’s confirmation of a significant increase in gambling taxes over the next two years. Remote Gaming Duty is set to increase from 21% to 40% in April 2026, while General Betting Duty on remote betting will rise from 15% to 25% by April 2027. The measures form part of wider fiscal reforms aimed at increasing public revenue and funding gambling harm prevention.
While many MPs back higher taxation, others warned that poorly calibrated increases could weaken the regulated market and unintentionally accelerate growth in illegal gambling.
Concerns Over Unintended Consequences
Conservative MP Louie French warned that excessive tax pressure might weaken licensed operators and shift gambling activity elsewhere instead of reducing it. Speaking during the debate, he argued that when the regulated sector is weakened, demand does not vanish; rather, it shifts beyond regulatory oversight.
French cited international examples where similar policies led to increased unlicensed gambling, warning that such environments lack age verification, consumer protections, and accountability. He described the black market as a significantly greater risk to both adults and children compared to regulated operators subject to UK oversight.
The concerns were echoed by other MPs, including those who otherwise support tougher controls on gambling. Several MPs warned that higher taxes could force some licensed operators to exit the market, weakening consumer safeguards and leaving customers more exposed to unlicensed sites.
Support for UK gambling tax rises and Harm Reduction Funding
Despite these warnings, many MPs speaking during the debates supported increased taxation, particularly where additional revenue is directed toward addressing gambling-related harm.
Labour MP Alex Ballinger argued that higher taxes on what he described as the most harmful forms of gambling, including online slots and casino products, could shift operator focus away from those areas while funding protection measures. Other Labour MPs welcomed the role of increased taxation in supporting prevention and treatment efforts.
The debate also referenced the statutory gambling levy introduced in April 2025, which funds research, prevention, and treatment of gambling-related harm. MPs, including Kevin McKenna and Jim Dickson, said they supported the targeted approach, particularly where funding is directed toward vulnerable communities and young people.
Job Losses and Market Impact Raised in Finance Bill Debate
Concerns extended beyond illegal gambling during a separate parliamentary discussion on the Finance Bill, which will formally introduce increased gambling taxes. MPs warned that the cumulative impact of tax rises could lead to job losses and shop closures across the sector.
Shadow exchequer secretary James Wild noted that excessively high tax rates could alter behaviour in ways that reduce overall revenue, pushing activity toward unregulated markets where consumer protections are weakened, and tax is not collected. Labour MP Gareth Snell cited analysis from the Office for Budget Responsibility suggesting the changes could drive activity toward the black market, ultimately reducing economic returns and harming the wider economy.
Similar concerns have previously been raised by operators, including Entain and Evoke, who warned that sustained tax pressure could reduce investment and employment in the UK market.
Industry Calls for Evidence-Led Policy
Following the debates, Betting and Gaming Council chief executive Grainne Hurst urged the government to take an evidence-led approach when implementing UK gambling tax rises. She warned that further increases risk accelerating job losses and encouraging customers to turn to unlicensed operators.
Hurst said that the regulated betting and gaming sector currently employs more than 100,000 people in the UK and generates billions in tax revenue, while also funding sport, charities, and safer gambling initiatives. She argued that undermining the licensed market would benefit illegal operators who pay no tax and operate with no consumer protections.
As the Finance Bill advances through Parliament, the debate is likely to focus on balancing revenue generation, funding harm reduction initiatives, while maintaining a viable regulated gambling market.