SMF Calls for a Big Shake‑Up to Online Casino Taxes
In a bid to tighten the purse of the Exchequer before the Autumn Budget, the Social Market Foundation has released a fresh report urging a hefty hike in the Remote Gaming Duty (RGD) that sits on top of every UK internet casino chip.
Why the Tax Might Just Win Itself a ‘£900 Million’ Jackpot
Right now, the RGD is a modest 21% levy. The analysis argues for a bold jump to 42% – a doubling that could, in theory, deposit up to £900 million straight into the Treasury.
Public Pulse: The Net of Opinion Swings in Favor of a Higher Duty
- New polling conducted specifically for the SMF report shows that 52 % of Britons want the government to crank up taxes on online gambling.
- When asked to slice the tax budget, three‑quarters of respondents voted for a higher gambling duty ahead of income tax, VAT, inheritance tax, and even the fuel, alcohol, and tobacco duties.
The headline that has everyone weighing in: “If the government raises the RGD, we’re all inching toward a bigger conservation fund,” and the report doesn’t shy away from hoping the move will strike a blow for the nation’s pockets.
The Big Gamble on Taxes
Over the last few years, remote gambling has exploded like a high‑stakes poker dial. Yet surprisingly, UK operators are ready to pay more tax elsewhere for the same activity, creating a perfect storm for a fresh government to harvest revenue from online casinos. Think of it as a fiscal sudoku—except the missing numbers are a whopping £22 billion.
Why the On‑line Casino Industry is Already Undervalued
Despite the waves of profit in digital slots, the UK actually under‑taxes this sector. The reasons? Let’s break it down.
- VAT N/A – Unlike most products and services, gambling skips VAT front and center.
- Hidden Harm – When games glitch into addiction, the government pays the bill in lost productivity and health costs. Slots turn out to be the wild‑card offenders.
- Offshore Shenanigans – Many operators set up shop on distant shores to dodge UK corporate tax. A neat trick, but good for the Treasury? Absolutely not.
- International Benchmarks – UK tax rates are often gentler than abroad— 40% in parts of Europe and over 50% in several U.S. states, all while UK’s remote slot duty lags behind.
Who Says This Needs a Tax Sweep?
The Social Market Foundation (SMF) has logged this as a red flag. Dr. James Noyes, a former strategist for Labour’s gambling reform, and Dr. Aveek Bhattacharya—who once advised the Gordon Brown Commission—have written the report.
But you’re not in the dark: the Institute for Public Policy Research (IPPR), the policy lighting rod of the UK, recently pushed for a fresh commission on Health and Prosperity. Their recommendation? A steaming hot increase in gambling duty that could rake in an extra £2.9 billion by 2026.
Dr. Bhattacharya on the Pay‑the‑Right‑Price Principle
According to the research maestro, “For years enough, the UK has let online gambling thrive on a low‑tax playground. Tik‑Tik! Time to double the duty to 42%. That move would clean up a £900 million tax gap and reckon the social damage we’re already shouldering.”
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