HMRC released preliminary figures for Remote Gaming Duty, the online gambling tax that rose from 21% to 40% on 1 April. Sports betting was exempt. The Treasury collected £376 million in the second quarter, up £67 million or 22% year-on-year.
That is below the £360 million collected in the first quarter under the old 21% rate. But the data undercuts the industry's core argument: operators warned higher taxes would shrink receipts by forcing cuts to marketing and odds. The Labour government, which has been openly sceptical of bookmaker lobbying, may treat the result as another false alarm.
Machine Games Duty is now in focus. Chancellor John Healey presents the budget on 28 October, and sources say Prime Minister Andy Burnham's office is considering doubling MGD: from 5% to 10% for Category 1 machines, 20% to 40% for Category 2, and 25% to 50% for the rest. MGD receipts for the second quarter came to £162 million, up 5% on the prior year.
The Betting and Gaming Council launched a "Back Our Betting Shops" campaign and warned of widespread closures. JenningsBet founder Greg Knight said an MGD increase could cost his firm more than half its 200 shops. The British Horseracing Authority cited lost levy and media rights income and predicted closures and job losses.
The government needs funding for the National Care Service and infrastructure. With inflation and defence spending under pressure, the industry's odds of blocking the rise are poor. The Social Market Foundation is campaigning against the sector, former Prime Minister Gordon Brown backs tougher rules, and gambling minister Vicky Foxcroft appeared on a panel with a foundation researcher.
