Gordon Brown Backs 30% iGaming Tax Rise to Tackle Child Poverty

Former UK Prime Minister Gordon Brown has called for a significant increase in iGaming taxes, backing proposals from the Institute for Public Policy Research (IPPR) that aim to lift around half a million children out of poverty.

The left-leaning think tank’s report recommends raising taxes on online casinos from 21% to 50%, and slot and gaming machines from 20% to 50%. According to the IPPR, this would help offset the fiscal gap created by the current Labour government’s decision to scrap the two-child limit and benefit cap.

Writing in The Guardian, Brown described the move as “the crucial first step in the battle we must wage against child poverty,” claiming the sector is “significantly” undertaxed and accusing many operators of registering overseas to avoid paying their share. He also dismissed industry claims that gambling companies contribute £6.01 billion annually and employ over 100,000 people, calling the figures “grossly exaggerated.”

The Betting and Gaming Council responded swiftly, labelling the proposals “economically reckless” and warning that such tax hikes would drive players towards unregulated markets.

IPPR principal economist Henry Parkes defended the idea, stating: “In a context of glaring and rising levels of child poverty, it seems fair to ask this industry to contribute a little more.”

Child poverty in the UK hit a record high in 2024, with an estimated 4.45 million children – 31% of all children in the country – living in relative poverty after housing costs.