Never a more urgent time for us all to pull together

Wednesday 23rd July 2025

Monday was the deadline for interested parties to respond to HM Treasury’s consultation on the Tax Treatment of Remote Gambling.

Government consultations do not tend to make for exciting reading, or compelling material for a blog, but it is of such importance to the betting sector, including the Tote, British horseracing and consumers, that I wanted to take this opportunity to share some thoughts on why this matters and how we might achieve a positive outcome for all.

The Tote comes to this topic from a positive standpoint. As a company which was state owned and run for 83 years (until 2011), and whose team of around 200 people is predominantly based in the heart of Wigan, we always seek to have a good relationship with both the Government and the Gambling Commission as our regulator.

We also realise nothing ever stands still for long and for HM Treasury to consult on the structure of remote gambling should not in any way be a surprising manoeuvre. Anyone who works with HM Treasury is familiar with the age-old rhetoric that taxes are always kept under review.

Going further, the government’s stated objective of delivering a “modern, resilient and agile tax system” is a good one. Unfortunately, that’s where the positives abruptly end. It is the Tote’s belief that the proposals set out in the consultation are problematic and would produce a number of unintended and undesirable consequences for most stakeholders, including government itself.

Specifically, the Tote is strongly opposed to a single rate of duty across the remote gambling sector. Our position appears to be shared by most other stakeholders given the media coverage on the topic so far. British racing, with the support of Racing Post, is leading the #AxeTheRacingTax campaign highlighting the significant financial impact any single, higher rate of tax would have on the sport. Even many of the Government’s own MPs oppose the move, be it sometimes for different reasons.

Dan Carden, Member of Parliament for Liverpool Walton (who has Aintree Racecourse within his constituency) and Chair of the All Party Parliamentary Group for Racing and Bloodstock, has been at the forefront of the Group’s report entitled “Securing Racing’s Future: The Threat to British Horseracing”. This report highlights that any increase in tax on online betting on horseracing risks driving bettors to the black market. This  will have a further negative financial impact on the sport, as well as revenues collected by Treasury.

Meanwhile, fellow Labour MP, Alex Ballinger, has stated “Combining the duties might have unintended consequences, because it would create an even higher incentive for companies to steer people towards the more harmful forms of gambling. Online casinos and slots should keep paying a higher rate of tax than your local bingo hall or bookmakers.”

There will be much we can all disagree on in the often-heated debate on gambling, but I think all stakeholders recognise different forms of gambling should be, and currently are, regulated and taxed differently. Perhaps, without even realising it, HM Treasury’s consultation seeks to undo this basic principle creating a raft of unintended consequences.

As you would expect, the Tote has made a detailed response to the consultation. Within it we have highlighted the company’s role in supporting racing, and the costs that come with that, as well as our role in the Wigan community and overall contribution to UK Plc.

We have also sought to suggest there are ways for the Government to achieve its stated objectives. The key is flexibility.

For example, it would be potentially viable to have a new single tax regime for remote gambling if it operated with variable rates by product which can be set and amended to adapt to market changes and changing consumer behaviour. There is already a template in place for this in two existing areas. The first is the current General Betting Duty (GBD) which has different rates within it. The second is the new Statutory Levy for the Research, Prevention and Treatment of gambling. The new Statutory Levy was announced by the Department for Culture, Media and Sport (DCMS) in November 2024 with new variable rates of between 0.1% and 1.1% of Gross Gaming Yield (GGY) depending on the different types of gambling taking place.

It is very clear that with a little creative thinking and willingness from ministers, officials and stakeholders there will be a viable and positive way forward. As we always seek to do, the Tote will pull together with fellow stakeholders to help try and achieve this outcome for all.

For more information about the UK Tote Group please visit www.uktotegroup.com and follow us @UKToteGroup and @ToteRacing.