Online gambling hit with £1.2bn tax raid

Levy increased to offset betting machine losses

OnLinE gambling firms will pay higher taxes to plug a shortfall in treasury coffers caused by a clampdown on ‘crack cocaine’ betting machines.

the Chancellor said the duty for online gambling would rise to 21pc from 15pc, bringing in an extra sum of around £1.2bn from 2019 to 2024.

the move came as he revealed the maximum stake on fixed-odds betting terminals (FOBt) would be slashed from £100 to £2 in October 2019. the reduction in revenues from these machines is set to cost the Government £1.15bn in lost taxes by 2024.

Shares in gambling firms rose, however, as the crackdown was not as bad as feared.

William Hill climbed 3pc, or 6p, to 205p, while rival GVC (owner of Foxy bingo, pictured) shot up 6.5pc, or 65.5p, to 922p.

russ Mould, investment director at broker aJ Bell, said shares could continue to ‘fly’ given that they had been heavily sold in the preceding few days amid speculation over the tax. Campaigners blasted the decision, saying it put profits before people’s welfare. Carolyn Harris, chairman of the all-party parliamentary committee on fixed-odds betting terminals, said she was appalled. the Labour MP added: ‘this will lead to many more vulnerable people’s lives being harmed while the bookmakers will continue to make millions from fixed-odds betting machines. the bookmakers must be delighted and we can clearly see where the priorities of this Government lie.’

a spokesman for Fairer Gambling, which campaigns for regulation in the industry, said delaying the cap was ‘unacceptable’.

He added: ‘increasing remote gaming duty was the correct decision but a missed opportunity to not set it at 25pc, which would bring it into line with similar bricks and mortar gambling venues.’

and Bishop of St albans, alan Smith, a campaigner against problem gambling, claimed the Chancellor’s decision ‘gives the impression of valuing bookmakers and the tax-take more than vulnerable problem gamblers’.

the Daily Mail has highlighted the toll caused to families of gambling-related suicides, often of young people who were first hooked by the machines found in most High Street bookmakers.

Gamblers can bet £100 every 20 seconds on the machines, which offer casino-style games such as roulette. it means they can lose thousands in a single session.

a treasury spokesman said the introduction of the £2 cap was intended to address problem gambling while also giving bookmakers enough time to adjust.