Northern Ireland Assembly urges higher gambling tax

The Northern Ireland Assembly’s All-Party Group (APG) on Reducing Harm Related to Gambling has called on the UK government to reconsider its proposed plans to harmonise remote gambling tax rates. In a formal letter addressed to the Chancellor, the group warned that equalising tax rates for different forms of remote gambling—such as online betting, casino games, and slots—could unintentionally “incentivise” gambling operators to promote more addictive products, increasing the risk of harm to players.

The group’s intervention comes at a critical time as the UK Treasury continues to evaluate its gambling taxation framework amid ongoing reforms intended to modernise the nation’s gambling laws and address growing concerns about problem gambling and addiction.

Concerns over harmonising tax rates

According to the letter, signed by APG Chair Philip McGuigan MLA, members expressed deep concern that the proposed harmonisation of tax rates could undermine the government’s broader public health objectives. The letter warned that such a move “would contradict the Government's manifesto commitment to reduce gambling harm,” adding that uniform tax rates could create financial incentives for gambling operators to channel players toward higher-risk gambling products.

Currently, the UK’s gambling tax system distinguishes between different products, with Remote Gaming Duty applied to online casino games and slots, and General Betting Duty applied to online sports betting. Online gaming and slots are generally taxed at higher rates due to their greater potential for harm. The Treasury’s proposal to harmonise these rates, therefore, has raised alarm among public health advocates and policymakers who believe the distinction serves a protective function.

Support for targeted tax increases

Instead of harmonisation, the APG has endorsed policy recommendations from the Social Market Foundation (SMF) and the Institute for Public Policy Research (IPPR), both of which advocate for differentiated tax increases that reflect the varying levels of harm associated with different gambling activities.

The think tanks propose increasing Remote Gaming Duty from 21% to 50%, while raising General Betting Duty from 15% to 25%. This two-tiered structure, they argue, would not only align taxation with risk but could also yield up to £2 billion in additional annual revenue for the Treasury. Such revenue could be reinvested in public health services, education, and addiction prevention programs.

Economic and social rationale behind higher taxes

The group’s reasoning extends beyond moral and health arguments. In their view, higher taxes on the most harmful gambling products would also help offset the estimated £1 billion in annual social costs linked to gambling-related harm across the UK. These costs encompass healthcare, criminal justice, and lost productivity expenses associated with problem gambling.

Philip McGuigan MLA emphasised that “remote gambling products cause significantly different levels of harm,” noting that online gaming and slots are substantially more addictive than traditional sports betting. He stated that raising taxes on these riskier products “would not only discourage harmful gambling behaviour but would also help fund services that mitigate the damage gambling causes to individuals and families.”

The specific challenges facing Northern Ireland

The letter also highlighted the unique situation in Northern Ireland, which faces some of the highest problem gambling rates in the UK. Research suggests that Northern Ireland’s gambling participation rates and addiction levels surpass those of England, Scotland, and Wales. Despite this, the region continues to operate under an outdated regulatory framework—one that lacks the comprehensive protections available in Great Britain.

Northern Ireland’s Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 remains the primary legislative framework governing gambling in the region. While modest reforms have been introduced in recent years, including the Betting, Gaming, Lotteries and Amusements (Amendment) Act (Northern Ireland) 2022, the law still falls short of modern UK standards. The APG argues that the absence of updated regulation has left players exposed to greater risk and has limited the ability of authorities to address gambling-related harm effectively.

Offshore operators and economic fairness

A key point raised by the APG concerns the taxation of remote gambling operators, many of whom are headquartered offshore. The group argued that these companies “remain undertaxed compared to other jurisdictions” and contribute little to the Northern Irish economy. Most online gambling platforms that serve UK and Northern Irish players are licensed in Gibraltar, Malta, or the Isle of Man, where corporate tax rates and regulatory obligations are more favorable to businesses.

As a result, while gambling profits are substantial, the financial benefits often fail to reach the local economy. The APG’s letter stresses that “offshore operators contribute minimally to employment or supply chains in Northern Ireland,” calling for a more equitable fiscal approach that ensures these companies contribute their fair share to public finances.

Balancing taxation and economic impact

Opponents of higher taxes argue that steep increases could drive players toward unregulated offshore platforms and push legitimate operators out of the UK market. Industry groups also claim that higher taxes could impact employment within the gambling sector and reduce sponsorships in sports such as horse racing and football.

However, the APG and supporting think tanks maintain that the benefits of reduced gambling harm and increased public revenue outweigh these concerns. They suggest that any potential market contraction would be offset by the long-term gains of a healthier, more sustainable gambling environment.

The group’s position echoes the principles of “polluter pays” taxation, where industries that cause social or economic harm are taxed at higher rates to fund mitigation and prevention efforts.

The broader UK debate on gambling reform

The APG’s intervention contributes to a growing debate over the UK’s approach to gambling reform. The government’s Gambling White Paper, released in 2023, proposed a series of measures to enhance player protection, including stake limits for online slots, affordability checks, and restrictions on advertising.

While the White Paper focused primarily on regulatory and consumer protection reforms, fiscal measures such as taxation have increasingly entered the conversation as a complementary tool to address gambling-related harm.

Policy experts suggest that a progressive tax system could serve as both a deterrent and a corrective mechanism, incentivising operators to promote safer gambling products while providing funding for treatment and prevention services.

Calls for collaboration between Westminster and Stormont

The APG has also called for closer collaboration between the UK Treasury and the Northern Ireland Executive to ensure that gambling taxation and regulation align across jurisdictions. Currently, gambling policy in Northern Ireland is devolved, but taxation remains a reserved matter for Westminster.

This division of powers has created policy inconsistencies that complicate efforts to tackle gambling-related harm. The APG is urging both governments to coordinate their approaches, ensuring that fiscal and regulatory measures reinforce each other rather than operate in isolation.

Moving toward a harm-focused gambling economy

As the debate continues, the APG’s letter underscores a growing consensus among public health advocates and policymakers: gambling taxation should not only serve fiscal goals but also reflect the societal cost of addiction and harm.

Raising taxes on high-risk products like online slots and casino games would align the UK’s gambling framework with public health objectives, making operators more accountable and protecting vulnerable players.

The APG’s intervention represents a decisive call for evidence-based policy—one that prioritises societal wellbeing over commercial interests and seeks to correct what many see as an imbalance in the current system.

Conclusion

The Northern Ireland Assembly’s All-Party Group on Reducing Harm Related to Gambling has reignited the national conversation on gambling taxation, urging the UK government to pursue policies that place public welfare above industry profit.

By advocating for higher tax rates on the most harmful gambling products, the group aims to create a fairer, more responsible system—one that discourages addiction, generates public revenue, and ensures that the companies profiting from gambling contribute meaningfully to mitigating its social costs.

While debate continues over the potential economic implications, the group’s stance reinforces a broader shift toward a more ethical and harm-conscious gambling economy in the UK.

FAQs

What is the Northern Ireland Assembly’s All-Party Group on Reducing Harm Related to Gambling?
It is a cross-party group of Members of the Legislative Assembly (MLAs) focused on reducing gambling-related harm and promoting responsible gambling policies.

What prompted the group’s letter to the UK Chancellor?
The group wrote to oppose the Treasury’s plan to harmonise remote gambling tax rates, which they believe could increase addiction risks.

Why is tax harmonisation considered harmful?
Critics argue that it would remove financial disincentives for promoting high-risk products like online slots and casinos, leading to greater harm.

What alternative does the group propose?
They support raising Remote Gaming Duty to 50% and General Betting Duty to 25%, following recommendations from public policy think tanks.

How much revenue could higher taxes generate?
According to analysis by SMF and IPPR, these tax increases could yield up to £2 billion in additional annual revenue.

Why is Northern Ireland particularly affected?
Northern Ireland has the highest rate of problem gambling in the UK and lacks the modern regulatory protections found in Great Britain.

Do gambling operators pay enough tax currently?
The APG argues that many remote operators are based offshore and contribute little to local economies or public funds.

What are the social costs of gambling harm?
Gambling-related harm costs the UK over £1 billion each year in healthcare, criminal justice, and productivity losses.

Could higher taxes push players to illegal gambling sites?
Some industry representatives warn of this risk, but policymakers believe robust regulation can prevent such outcomes.

What is the overall goal of the APG’s proposal?
To create a safer, fairer gambling environment that aligns fiscal policy with public health priorities and reduces addiction rates.