Billionaire Urges UK Gambling Tax Increase to Combat Addiction and Poverty
John Caudwell’s Call for Gambling Tax Hike Sparks Debate on Social Harm
John Caudwell, the billionaire who built Phones 4u, wants the UK government to raise taxes on gambling to fix big problems in society.
He points out how online betting hurts people and families. Let’s look at this together to see why it matters and what data shows.
Caudwell shared his views in a recent interview. He backs ideas from former Prime Minister Gordon Brown and a think tank called the Institute for Public Policy Research.
This comes as the Labour government plans its budget. Caudwell thinks higher taxes could bring in billions to help with child poverty and other issues.
Who Is John Caudwell and Why Does He Care?
John Caudwell started as a car salesman and grew his business into a huge phone company. He sold it for a lot of money in 2006.
Now he gives to charity and speaks on big topics. He used to support the Conservatives but switched to Labour before the last election.
In his words from an interview, online gambling lets people bet all day on their phones and lose family money. He calls it mayhem that needs fixing through taxes.
On social media, he posted support for hiking duties on betting, especially online kinds. This fits his past ideas, like in 2023 when he said tax gambling hard to fund addiction help.
His shift shows how some business leaders want taxes on harmful things. It helps you see that even rich people worry about society’s weak spots.
The Current UK Gambling Landscape
The UK gambling world is big and growing. It includes online bets, casinos, and lotteries.
Data from the Gambling Commission shows the total gross gambling yield hit £15.6 billion from April 2023 to March 2024. That’s up 3.5 percent from the year before.
About 25 million adults gamble each month. Online casino games make the most money, but the National Lottery draws in the most players.
Taxes from gambling bring money to the government. In 2023/24, it was nearly £3.4 billion. For 2024/25, early numbers say £3.6 billion.
Here’s a table with key numbers to make it clear.
| Category | Amount (Latest Available) | Source Year |
| Total Gross Gambling Yield | £15.6 billion | 2023-2024 |
| Tax Receipts | £3.4 billion | 2023-2024 |
| Adults Gambling Monthly | 25 million | 2024 |
| National Lottery for Good Causes | £1.7 billion | 2023-2024 |
This setup funds things like sports and arts through the lottery. But it also hides costs we’ll talk about next.
What Taxes Are in Place Now?
Right now, different gambling types pay different taxes. Remote gambling, like online bets, pays 21 percent duty.
General betting on sports is at 15 percent. Machine games in arcades pay based on profits too.
The government added a 1.1 percent levy in 2025 for research and treatment of gambling problems. That’s up from 0.1 percent before.
These rules aim to balance fun and safety. But critics say they don’t go far enough on harm.
Have you ever wondered why online gambling grows so fast? It’s easy access on phones, like Caudwell says.
Proposed Changes and How They Could Work
Caudwell supports Brown’s letter to Chancellor Rachel Reeves. It pushes for big jumps in taxes.
The plan from the IPPR includes raising remote duty to 50 percent. Machine gaming would go to 50 percent too.
Sports betting duty would rise to 25 percent, but horse racing stays exempt to protect jobs.
This could add £3.2 billion a year to government funds. Caudwell thinks even up to £5 billion.
Let’s break it down in steps. First, spot the high-harm areas like online slots. Next, tax them more. Then, use the money for poverty programs.
A table shows the changes side by side.
| Tax Type | Current Rate | Proposed Rate | Expected Extra Revenue |
| Remote Gambling Duty | 21% | 50% | Part of £3.2bn total |
| Machine Gaming Duty | Varies | 50% | Part of £3.2bn total |
| General Betting Duty | 15% | 25% | Part of £3.2bn total |
Exemptions keep some low-harm games like bingo unchanged. This helps you pick what matters for society.
The Real Cost of Gambling Harm
Gambling isn’t just about wins and losses. It hurts people in ways that cost everyone.
Studies show problem gambling affects 0.4 percent of adults, but that’s likely low. The total social cost in England is between £1.05 and £1.77 billion a year.
This includes suicide costs at £619 million. Homelessness adds £63 million. Crime linked to gambling costs £163 million to handle.
Think of it like a hidden bill. One person bets too much, loses the house, and needs help from taxpayers.
Families suffer too. Kids in poverty rise when parents gamble away money. Higher taxes could cut this by funding support.
A table lists main costs.
| Harm Type | Estimated Annual Cost (£ million) | Details |
| Suicide | 619 | Linked to gambling despair |
| Homelessness | 63 | From financial ruin |
| Crime | 163 | Theft to fund habits |
| Health Impacts | Varies (part of total) | Mental and physical issues |
These numbers come from government reports. They help you see the full picture.
Weighing Benefits Against Risks
Higher taxes could lift 500,000 kids out of poverty with the extra money. That’s a real win for families.
It might cut gambling by making it cost more for companies. Less ads, less harm.
But some worry about jobs. Racing areas have MPs who fear losses. Shops might close if taxes bite too hard.
Companies like Entain and Flutter saw revenue up in 2025, but taxes could slow that. A moderate rise, like to 42 percent, might bring £900 million without big damage.
When I consider this, it reminds me of how taxes on smoking helped health. Gambling could follow that path.
Parties are split. Labour has backers like Caudwell pushing hard, but others want care.
This info lets you think about trade-offs in your own way.
What Happens Next and Why It Matters to You
The budget will show if Reeves listens. If yes, it could change how we handle harmful habits.
For you, it means possible better support if gambling touches your life. Or higher costs if you bet sometimes.
I don’t have all future details, but sources like the Gambling Commission and IPPR give solid ground.
In the end, Caudwell’s call highlights a push for taxes that heal society. It connects money, harm, and help in ways that could make things fairer. For more depth, check the Gambling Commission’s stats site.
