UK Gambling Firms Spent £2 Billion on Advertising Last Year Amidst Calls for Tax Hikes

UK Gambling Advertising Reaches £2 Billion, Fueling Tax Debate

British gambling companies invested an estimated £2 billion in advertising and marketing last year, according to a new estimate from media insights group WARC. This substantial expenditure has intensified calls for Chancellor Rachel Reeves to increase taxes on the sector, with a budget announcement anticipated soon.

The Scale of Advertising and Marketing Spend

The reported £2 billion spend by bookmakers, online casinos, and slot machine companies covered a mix of print and digital promotions, as well as affiliate programmes where third parties are paid to direct gamblers to specific operators. This figure significantly surpasses the £1.2 billion the Treasury collected last year from online casino companies. Media industry sources suggest the true total for gambling advertising could be even higher due to the difficulty in accurately measuring digital marketing spend. However, the Betting and Gaming Council (BGC), an industry group, disputes WARC's estimate, claiming the sector's ad spend is closer to £1 billion and has declined in recent years.

Mounting Pressure for Increased Taxation

Chancellor Rachel Reeves is facing considerable pressure from various groups, including think tanks, Members of Parliament, and former Prime Minister Gordon Brown, to raise duties on gambling firms. Proposals from influential think tanks like the Institute for Public Policy Research (IPPR) and the Social Market Foundation (SMF) recommend significant tax increases. For instance, the IPPR suggests raising the Remote Gaming Duty (RGD) from 21% to 50%, arguing this could generate up to £3 billion. These calls are often framed around a 'polluter pays' principle, aiming to fund initiatives like combating child poverty.

Industry Concerns and Warnings

The gambling industry, represented by the BGC, has strongly pushed back against proposed tax hikes. They argue that further tax increases could lead to:

• Job losses: Companies like William Hill and Betfred have warned they might shut shops and reduce staff.
• Boost to the black market: The industry suggests that higher taxes could drive consumers towards unregulated, illegal gambling sites that offer no age checks or safer gambling tools.
• Reduced funding for sports: The betting industry contributes significantly to sports like horse racing and football through sponsorship and levies.

The BGC also highlights that 20% of all broadcast and digital advertising by the industry is dedicated to safer gambling messaging, a voluntary commitment.

Regulatory Landscape for Gambling Advertising

Gambling advertising in the UK is primarily regulated by the Committees of Advertising Practice (CAP) and the Advertising Standards Authority (ASA). These bodies enforce codes that aim to ensure advertisements are socially responsible, do not encourage harmful gambling behaviour, and do not exploit vulnerable individuals or those under 25. Recent changes, effective from September 1, 2025, extend these regulations to all licensed gambling operators, regardless of their base, ensuring consistent marketing rules for UK consumers.