Politicians in Northern Ireland have mounted fresh pressure on UK Chancellor Rachel Reeves to hike gambling taxes in the 2025 Budget. The All-Party Group (APG) on Reducing Harm Related to Gambling has rejected the Treasury’s plans to tax all gambling products uniformly. The protestors claim that online gambling poses a far bigger threat to consumers than brick-and-mortar gaming establishments.
MLAs From Northern Ireland Assembly’s All-Party Group Call for Higher Taxes on Online Gambling Products: Highlights of the Story
- Members of the Northern Ireland Assembly’s All-Party Group (APG) on Reducing Harm Related to Gambling have written a strongly worded letter to UK Chancellor Rachel Reeves, opposing the government’s proposal to introduce a uniform gambling tax.
- The letter points out that the new policy violates the Labour Party’s manifesto pledge to reduce gambling harm. It urges the government to raise taxes on online gambling products, which cause more harm than physical gaming venues.
- The APG’s protest comes amidst wider debate about the future of gambling taxes in the UK. Members argue that a uniform tax rate fails to identify the difference in gambling harm caused by different types of gambling products.
Northern Ireland MLAs Cite Highest Rate of Problem Gambling as Reason for Tax Hike Demand
APG Chairperson Philip McGuigan has written a strongly worded letter to Chancellor Reeves, expressing serious concern over the Treasury’s plans to “harmonise” tax rates for all forms of gambling products across the UK. The group has warned that such a move would undermine nationwide efforts to fight gambling harm.
The Prevalence of Gambling in Northern Ireland 2024 report, published in April 2025, revealed that online gambling is on the rise in Northern Ireland. Players find online gambling accessible and convenient compared to physical casinos. Mirroring the trend, online casinos in Ireland have experienced strong growth in player activity over the past few years.
The faction argues that a uniform tax bracket would encourage gambling operators to drive customers from less harmful products, such as wagering on horse races and sports betting, to more addictive offerings like video slots and casino games. They highlight that the Treasury’s proposal violates the Labour Party’s pledge to fight gambling harm.
McGuigan wrote:
These proposals, which we understand you inherited from the previous government, are not in line with your party’s manifesto pledge to reduce harm related to gambling and will incentivise remote gambling operators to ‘cross-sell’ from less harmful betting products such as horse racing to the more addictive gaming content such as online slots.
McGuigan explained that Northern Ireland’s outdated gambling legislation puts its population at a greater risk of online gambling addiction. The jurisdiction has the highest gambling rate in the UK, according to the 2024 report. A harmonised tax rate would take the onus away from remote gambling operators to practise responsible gambling.
McGuigan continued:
We do not have the same regulatory protections as you do in Britain. Therefore, any steps that the British Government can take to reduce harms related to gambling in our jurisdiction, which has the highest rate of problem gambling, would be warmly welcomed by the All-Party Group.
UK Treasury Committee Responds to Industry Pushback
Treasury Committee Chairperson, Meg Hillier, in a press briefing on November 7, warned that the online gambling industry is hiding its nefarious side in the guise of harmless family entertainment. She highlighted the dangers of gambling addiction and recommended strict oversight to reinforce consumer protection standards.
Hillier said:
Whether at a local racetrack or a seaside arcade, for many people, gambling is a fun pastime enjoyed with family and friends. But we heard that the industry is hiding its more insidious parts behind the friendly facade of its traditional, cultural forms.
She explained that online gambling puts consumers at financial risk and urged the government not to cave into industry scaremongering. Her statement echoes McGuigan’s letter, in which he argues that online slots and casino games are more harmful than sports betting.
Hillier continued:
Online betting games are extracting huge amounts of money from people who have been funnelled into the most addictive, harmful corners of the industry via their love of sports or the occasional game of bingo.
We are urging the Government not to cave in to industry scaremongering and to tax online betting games at a rate that reflects the level of harm they inflict.
McGuigan’s letter urges the British government to increase the Remote Gambling Duty to 50% and the General Betting Duty to 25%, as recommended by the Social Market Foundation (SMF) and the Institute for Public Policy Research (IPPR). This will raise an additional £2 billion (roughly €2.28 billion) for the Treasury, which can be used to offset the social cost of gambling harm.
In July, the UK government was contemplating a gambling tax hike to compensate for a deficit budget. Experts analysed that gaming companies pay lower taxes in the UK compared to other EU nations. However, industry stakeholders opposed the hike, warning that such a move would hinder growth within the sector and result in layoffs.