Labour MPs Back Gambling Tax to Help Tackle Child Poverty

More than 100 Labour MPs have backed a campaign calling for increased taxation on the gambling industry — a move supporters claim could raise up to £3 billion and help lift around half a million children out of poverty. The proposal, emerging in the lead-up to the Autumn Budget, reflects the growing political pressure on the Government to find fresh sources of revenue while delivering welfare reform, including the potential removal of the two-child tax credit cap.

Although the campaign is aimed largely at major betting and gaming operators, its broader implications extend across the entire leisure gambling landscape, including amusements and low-stake gaming. The tone of the debate is shifting towards increased taxation and regulatory scrutiny, placing the regulated sector in a position where it must more clearly demonstrate its economic and social value — from job creation and investment to consumer protection and contributions to the Treasury. Operators also face the risk that higher duties or levies could affect venue viability, disrupt already-tight margins, and unintentionally strengthen the position of unregulated alternatives.

Industry bodies, including Bacta, have voiced concern that additional tax pressures could undermine a sector already navigating compliance challenges and rising operational costs. Their message is clear: squeezing regulated venues risks driving players away from safe, supervised environments and into the hands of the black market. The sector argues that it should be supported, not penalised, for operating within a robust compliance framework.

As the Budget approaches, operators will be watching closely to see how any new levy is defined, whether amusement machines and arcades are explicitly included or excluded, and what other regulatory proposals may accompany fiscal changes — such as adjustments to machine duty, evolving rules on cashless play, or updated age-verification requirements. Any shift in taxation will influence how operators plan investment cycles, refresh machine estates or manage cost structures over the coming year.

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6 November 2025

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