Labour officials have been warned that targeting gambling centres with higher levies would push people to move online where black market websites are “often accessed via VPNs”.
The government is widely expected to raise “sin taxes” at this year’s Autumn Budget following calls from former Prime Minister Gordon Brown and ex Labour donor John Caudwell to target gamblers.
But a think tank is leading calls for the government to avoid hiking taxes on adult gaming centres across the high street as it said companies’ profits had already declined by 23 per cent in the last seven years.
It also said centres paid higher fees on licensing and operating, contributing 80 per cent more than the highest alcohol licence.
