The gambling sector in the United Kingdom generated £1bn more in profit over the 12 months to March 2025, according to new data that is likely to intensify calls for higher gambling taxes in the upcoming budget.

According to the Gambling Commission, operator revenue (excluding lotteries) reached £12.6bn, up 9.3% from the previous year (£11.5bn).

Online casinos delivered the biggest increase

The largest jump occurred in the online casino sector — gross revenue rose by almost 15%, from £4.4bn to £5bn. This is already 55% higher than at the start of the Covid-19 pandemic in 2020.

Online games have long been criticized as one of the most addictive forms of gambling, reinforcing demands from politicians and activists to raise taxes on this segment.

Politicians: gambling companies earn huge profits from addiction

Iain Duncan Smith, chair of the cross-party group on gambling-related harm, said operators are generating enormous and growing profits:

Gambling companies make money through gambling products, often targeting the most vulnerable communities. Forms of gambling such as online casinos or gaming hall machines should be taxed far more heavily.

Meg Hillier, chair of the Treasury Committee, added:

Addictive online betting should be taxed more heavily than forms of gambling with cultural value, such as horse racing or bingo. The government must not be intimidated by the industry.

Industry lobbies and warns of venue closures

Gambling companies are actively urging the Treasury not to raise taxes. Major operators have warned of large-scale closures:

  • Betfred warned it could close all 1,287 of its betting shops if taxes increase.
  • William Hill owner Evoke said it is considering closing up to 200 betting outlets.

These appeals come amid a campaign by tabloid The Sun, which launched the Save Our Bets initiative.

Gaming halls also increased revenues

Adult Gaming Centres (AGCs) reported a 10% rise in revenue to £682.9m. However, they are under close scrutiny from critics, as they are often located in poorer areas and, according to activists, do not sufficiently support people with addiction.

The total number of such venues fell slightly — from 1,451 to 1,415, while the total number of gambling locations (including casinos, bingo halls, and betting shops) declined to 8,234.

The Betting and Gaming Council said the figures do not reflect the full context, including:

  • a new £100m levy for research, prevention, and treatment of gambling addiction,
  • new financial checks on players introduced in February,
  • more than 30 betting shops closed in the current quarter.

The industry notes that it contributes £6.8bn to the economy, pays more than £4bn in taxes, and supports 109,000 jobs.

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