Lancashire MPs Join Forces to Push for Online Gambling Tax
Over 100 lawmakers, including six Lancashire MPs, have urged Chancellor Rachel Reeves to impose a new tax on online gambling profits to fund child poverty initiatives.
LISTEN TO THIS ARTICLE:In a letter sent on September 24, the lawmakers call for a "targeted levy" on online gambling, claiming the current 21% tax rate is too low compared to countries like the Netherlands (37.8%) or parts of the US (up to 55%). The MPs argue that the sector’s £4.3 billion in annual profits from online slots alone justifies a higher tax, aiming to direct the revenue towards social welfare initiatives.
While the proposal targets high-revenue online products such as slots and casino games, it exempts horse racing due to its cultural and economic value. MPs hope to utilize the generated revenue to end the two-child benefit cap which restricts families with more than two children from receiving additional benefits. This policy affects approximately 1.6 million children living in families above the two-child limit.
MPs estimate that a 50% tax could raise £2.9 billion annually, which could fund the £3,000-per-household cost of lifting the two-child cap for 400,000 families.
The six Lancashire MPs included in the cross-party effort are Cat Smith (Lancaster and Wyre), Lizzi Collinge (Morecambe and Lunesdale), Lorraine Beavers (Blackpool North and Fleetwood), Maya Ellis (Ribble Valley), Paul Foster (South Ribble), and Sarah Smith (Hyndburn) who emphasized the impact of child poverty in their region.
I’m calling for the abolition of the two-child benefit cap because it’s holding too many families back. We live in one of the wealthiest countries in the world, yet far too many children are growing up in poverty. That’s why I’ve joined over a hundred colleagues in writing to the Chancellor, proposing a targeted levy on online gambling to help fund action on child poverty. The gambling industry is hugely profitable; it’s only fair that it contributes more to the society from which it profits.
As the UK prepares for the Autumn Budget on November 26, calls for increased taxes are growing louder and getting more voices in support. Last month former Prime Minister Gordon Brown publicly backed the proposal.
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The gambling industry has voiced its opposition to the proposal, describing it as a shortsighted attack that ignores its existing contributions and regulatory burdens. The Betting and Gaming Council (BGC) argue that additional taxes could push operators to relocate to jurisdictions with lower rates, costing the UK jobs and revenue. In 2024, the sector paid £4.5 billion in taxes and supported over 110,000 jobs, including roles in tech, customer service, and compliance.
Industry analysts warn that higher taxes could shrink the regulated market, reducing tax revenue and weakening consumer protections. A 2023 study by Ernst & Young found that a 10% tax hike could cut industry GDP contributions by £700 million.
For coastal Lancashire communities, where tourism and leisure jobs tied to gambling are significant, the levy could have ripple effects.
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