DCMS secretary on tax hike reports: “Don’t believe everything you read”

Lisa Nandy, secretary of state for the Department of Culture, Media and Sport (DCMS), has pushed back against reports the UK government is considering a £3bn tax raid on the gambling industry.

A report from the Guardian claimed the Treasury had taken notice of policy ideas from two think tanks, including the Institute for Public Policy Research, which called for a hike in remote gaming duty from 21% to 50%.

The report, published last Friday, 11 October, sent UK-listed operators’ shares sliding when the markets reopened on Monday.

The fallout saw analysts, the Betting and Gaming Council, Arena Racing Company and Flutter CEO Peter Jackson hit out at the alleged proposals on an industry that pays £3.4bn a year in tax.

In a note, published earlier this week, weighing up the potential impact on the industry, Regulus Partners said a  “damaging and self-defeating tax raid cannot be ruled out”.

Speaking as part of an oral questions session today, 17 October, in Parliament, Nandy was asked by Conservative MP Dr Luke Evans if she backed the industry as a growth sector given the reports of potential tax hikes.

Nandy, whose Wigan constituency is home to the UK Tote Group, did not provide an outright denial to the line of questioning, but did downplay concerns.

She said: “I just generally say to the honourable gentleman that he should know, as we do, that you can’t believe everything that you read in the papers.

“I think he will have heard from my previous answer that we are determined to strike the right balance. We’re aware of the value of this industry and the importance of it not just to the UK economy, but the joy it brings to many, many people, and the employment prospects it offers to people in every nation and region of the United Kingdom.

“We are also very aware of the problems that can be caused by problem gambling and, as the previous government did, we’re determined to talk to the widest range of partners to ensure we strike the right balance.”

Nandy was named DCMS chief by Prime Minister Sir Keir Starmer when Labour swept to power after demolishing the Tories at the general election in July.

While gambling policy is part of her department’s remit, the sector is under the watch of Baroness Twycross.

Nandy revealed that Baroness Twycross has held meetings with industry stakeholders ahead of a Westminster Hall debate on horseracing next week.

Nandy continued: “We have a dedicated minister for gambling, Baroness Twycross, and she has met with representatives from across industry and those affected by problem gambling in order to seek the widest range of views [and] to ensure that this government has a robust policy in place.”

Labour’s election manifesto included just 37 words on gambling reform, buried in its chapter on fixing the NHS.

Several leading UK operators, including evoke and Sky Betting & Gaming, have spoken about the initial positive shoots of a relationship between the industry and the new government.

Tax increases on the industry has been a notable trend this year, with Sweden increasing the duty paid on GGR from 18% to 22%, while the Netherlands is jacking up its GGR rate from 30.5% to 37.8% over the next two years.

Meanwhile, Illinois introduced a controversial progressive tax structure earlier this year that involved the largest online sports betting operators paying 40% on GGR.