As the budgetary challenges intensify for the Labour government and the UK Treasury, MP Alex Ballinger has become the latest party backbencher to demand a tax increase on gambling.
Speaking to Politics Home, the MP for Halesowen underpinned his belief that the public will be more receptive to the government targeting the gambling industry for tax rises, as opposed to other industries.
Ballinger stated: “It’s the most popular rise that could be proposed at the moment. It’s an area that the public recognises is causing harm. They would be sympathetic towards making companies like that pay.”
As the Autumn Budget looms, the government is being warned that the UK’s finances are ‘unsustainable’. Fears around the upcoming budget were also intensified as Transport Secretary, Heidi Alexander refrained from stating confirming that the wouldn’t raise taxes.
Ballinger underpinned his belief that the sector should be subject to a tax spike as he stated: “The UK has one of the least regulated, one of the most open societies for gambling, and that, of course, has had big consequences.”
Ballinger described the introduction of the Statutory Levy as a drop in the ocean when it comes to how far the government should go in committing funds towards gambling harm prevention.
“We’re looking at ways that we can reduce that harm to people, and so that those particular types of gambling pay more for the costs that they’re causing to the community. And the way we do that is through the taxation system,” he stated.
Calls from Ballinger for the UK to raise taxes to the levels of European counterparts will likely cause trepidation from many in the industry, particularly as warnings over black market activity continue to be raised.
The retail sector is also one that Ballinger set his sights on as he looks to see the prevalence of high street betting spaces dwindle, through the filling of a “big gap in the legislation”.
“You just need to walk around some of the left-behind towns in my part of the world to see it. We don’t have all the answers now, but some of the suggestions that Brent Council is making around councils having more power around the placing of those betting and gaming shops seems appropriate.”
Chancellor Rachel Reeves has been urged to re-consider the ‘polluter principal’ tax charges recommended at the last budget by the Social Market Foundation. The Think Tank demanded the Treasure double taxes on all online gambling activities from 21% to 42%, potentially raising £1bn annually.
A recent resort saw gaming stakeholders signal their concern over the extent of black market activity in the UK and the Netherlands specifically.
The European Gaming and Betting Association’s (EGBA) Sustainability Report 2025 featured testimonies from several of the continent’s biggest gaming groups, all of whom express concern about the extent of black market activity.
New spending caps introduced in the Netherlands have been specifically highlighted as a concern by EGBA. Like its neighbour across the North Sea (the UK), the Netherlands has been undertaking a regulatory review lately, which includes the prospect of some regulatory enhancements.
In 2024 the country introduced new spending caps on gambling, largely due to concerns around the proliferation of gambling and its societal impact since online market launch back in October 2021.
This has led to what EGBA has called a surge in black market activity in the country which has led to unregulated sites matching the regulated market for revenue. Meanwhile, in the UK the trade association has cited figures that £2.7bn is being staked annually on the black market.
A statement signed by John Coates (Joint Group CEO, bet365), Stella David (CEO, Entain), Jesper Svensson (CEO, Betsson Operations), Peter Jackson (CEO, Flutter Entertainment), Nils Andén (Chief Online Betting and Gaming Officer, FDJ United) and Mattias Wedar (CEO, LeoVegas), and Jimmy Maymann (Co-CEO, SuperBet Group), attempted to hammer the point home.
“Yet while we continue to invest significantly in responsible play and compliance, unregulated, untaxed black market operators, based outside Europe, are thriving across the continent,” the CEOs’ statement read.
“These operators target vulnerable players with unlimited access and significant bonuses, offer no customer protections or support for struggling players, and don’t contribute to public finances or European sports.
“They operate entirely beyond regulatory oversight, avoiding all costs and obligations, and face few repercussions.”
