Gordon Brown Urges Gambling Tax Hike to Fund Child Poverty Drive

Former UK prime minister Gordon Brown has called on the government to finance the abolition of the two-child benefit cap by sharply increasing taxes on gambling companies. Citing an Institute for Public Policy Research study, Brown said targeted duty rises on online casinos, slot machines and non-racing bets could raise up to £3.2 billion a year and lift about 500,000 children out of poverty. Under the proposals, the remote gaming duty on online casino profits would jump from 21% to 50%, duty on slot machines would likewise rise to 50%, and general betting duty on non-racing wagers would increase from 15% to 25%. Bingo, lotteries and horse-racing bets would be unaffected. Brown argued that gambling profits are "massively undertaxed" and noted that more than 60% of industry revenue comes from 5% of customers, many facing severe financial and mental-health harm. He warned that the UK is experiencing poverty levels reminiscent of six decades ago. The Betting and Gaming Council rejected the plan as "economically reckless," saying higher rates would push gamblers to unregulated sites and jeopardise £6.8 billion in economic contributions, £4 billion in existing tax payments and 109,000 jobs.