Taxation as Gambling Harm Reduction or UK Treasury Imperative?

This paper critically examines the United Kingdom Government's November 2025 reforms to gambling taxation, announced by Chancellor Rachel Reeves, which nearly doubled Remote Gaming Duty from 21% to 40% and increased online betting duty from 15% to 25%. Drawing on welfare economics theory, particularly Pigouvian taxation frameworks, and public administration scholarship, this analysis interrogates whether these reforms constitute a genuine public health intervention designed to reduce gambling-related harm or represent a fiscal strategy primarily motivated by Treasury revenue requirements. The paper examines the interplay between increased taxation, existing Know Your Customer (KYC) regulatory requirements, and the Online Safety Act 2023, arguing that the cumulative regulatory burden may produce unintended consequences, including accelerated migration to unlicensed black market operators. Through systematic analysis of government documentation, industry data, and academic literature, this study concludes that while the rhetorical framing emphasises harm reduction, the policy architecture reveals a fundamental tension between revenue optimisation and genuine public health objectives. The paper recommends a recalibration of policy priorities toward demand-side interventions and enhanced treatment infrastructure rather than supply-side taxation alone.