Pressure mounts on Rachel Reeves to defy industry warnings and reveal potential increases in gambling taxes in the upcoming budget.
A prominent group of MPs is advocating for the Chancellor to move forward with measures targeting companies profiting significantly from gambling activities, causing substantial harm in the process.
A recent report by the Treasury Committee recognizes that while many engage in safe gambling practices, there has been a notable increase in online betting platforms that promote addictive and harmful behaviors without any tangible benefits to individuals or communities.
Despite industry lobbying efforts, the committee rejects claims that gambling has no negative societal impact.
Dame Meg Hillier, chair of the committee, highlighted the deceptive nature of online gambling activities, emphasizing their detrimental effects on individuals and communities.
The committee urges the government to resist industry pressure and impose taxes on online gambling commensurate with the harm caused.
Government data cited in the report shows a significant increase in profits for online gambling operators over the past decade, reaching £6.9 billion annually.
Recommendations include raising the remote gaming duty, predominantly affecting online profits, and the machine games duty, which primarily impacts physical slot machines, to levels surpassing those imposed on casino clubs.
Any potential tax increase could face opposition from bookmakers concerned about reduced revenues for their broader operations, including brick-and-mortar establishments.
Critics argue that higher machine games duty rates could negatively impact businesses such as seaside arcades, pubs, and bingo halls that host slot machines.
MPs also call for measures to address industry claims that tax hikes might drive consumers towards illicit gambling providers.
Former Prime Minister Gordon Brown has previously supported calls for increased taxes on gambling companies to raise funds for poverty alleviation initiatives.
Speculation surrounds the treatment of horse racing in the context of potential gambling tax adjustments.
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