From Poacher to Gamekeeper: The Gambler Who Took on Bookies and Now Advocates for a UK Tax Increase

Multimillionaire Derek Webb, a prominent Labour donor, is going all-in with his support for a new tax levy on online casinos and bookmakers.

Webb, a former professional poker player who has long mastered the art of outplaying opponents, is now taking on the gambling industry itself. After successfully backing a campaign to restrict £100-a-spin fixed odds betting terminals (FOBTs), he’s now pushing for a significant tax increase on the sector. The stakes are high, with the potential to raise up to £3bn annually through increased gambling duties, a move under consideration by the Treasury as part of Chancellor Rachel Reeves’ upcoming budget.

The gambling industry, which generates £11bn from British punters annually, is resisting these plans, warning of potential economic fallout and the risk of growth in the hidden market. However, Webb, who has quietly become one of Labour’s top individual donors with £1.3m contributed since 2023, is advocating for stronger regulation and higher taxes. His wealth largely stems from the casino industry, where he devised the game Three Card Poker, which he sold for $25m, later increasing his fortune through intellectual property litigation.

Webb’s donations and activism are aligned with think tanks like the Social Market Foundation (SMF), which has recommended raising gambling taxes by up to £3bn. Webb, who is also supporting campaigns to tighten gambling advertising regulations, argues for more stringent control of the industry. Despite some industry insiders suggesting that Webb’s motivations may be tied to land-based casinos, he denies having any current financial interest in that sector and remains focused on socioeconomic justice.

Webb’s drive for reform is fueled by his growing concern over the predatory tactics used by British gambling operators, which led him to campaign for stricter regulation and tax hikes. He insists the Treasury must take action, saying, “It would be a dereliction of duty if they don’t do something.”

Meanwhile, the gambling industry is fighting back, led by lobbyists like Michael Dugher, a former Labour MP, and Grainne Hurst, a former executive at Entain, both of whom have extensive networks within Westminster. Despite the industry’s resistance, insiders believe that the proposal for a tax increase is gaining traction, with no significant opposition emerging from Treasury officials.

As the budget approaches, it remains to be seen which side will emerge victorious in this high-stakes battle.