The Betting and Gaming Council (BGC) has issued a warning that additional tax increases on the regulated betting and gaming sector could harm economic growth, cost jobs, and drive more players towards the unregulated gambling black market.
According to a report by EY, BGC members contribute £6.8 billion to the UK economy in Gross Value Added (GVA) and generate £4 billion in tax revenue while supporting 109,000 jobs across the UK. The industry supports high-street bookmakers, provides employment in cities such as Leeds, Stoke, and Sunderland, and makes significant investments in sports like horse racing, football, rugby league, and snooker.
However, the BGC cautions that tax hikes, combined with the reforms announced in the recent Gambling White Paper, could destabilize the regulated market, encouraging more customers to turn to the black market. The illegal gambling sector, which operates without player protections or tax obligations, is estimated to see £4.3 billion in stakes annually from around 1.5 million UK players.
The BGC has previously advocated for reforms to raise industry standards but warns that further regulatory and tax burdens could harm the industry’s contributions to the economy and to sports funding, which totals £350 million annually for horse racing alone.
With the new statutory levy set to raise £100 million annually to fund research and treatment for problem gambling, the BGC emphasizes the importance of balanced regulation to protect the industry’s economic contributions and the 22.5 million Britons who enjoy betting responsibly each month.
BGC CEO Grainne Hurst, said: “Our sector is at a crossroads as we seek to implement the measures contained in the White Paper and deliver a new era of stability and growth so we can continue making significant economic contributions to the country.
“After so many years of uncertainty, this sector needs stability to deliver sustainable investment, not further change which threatens to undo that contribution.
“Any new taxes now, at any scale, at this critical juncture risks undermining that good work while giving a leg-up to the lurking menace of the black market, which is ready to hoover up disaffected customers sensitive to any degrading of the offer they get in the regulated sector.
“Customers have been hit hard for years, with extreme pressure on the cash they have left in their pockets, once bills and taxes are paid, to enjoy their hobbies including having a flutter. We don’t want to see the pressure on working people ramped up.
“Regulated betting and gaming remains a hugely popular pastime in this country, enjoyed safely by the overwhelming majority, while our members are a Great British export and genuine global leaders, delivering enormous economic good in city centers, on high streets and in the growing online sector. That investment positively impacts other sectors too, with BGC members pouring millions into Britain’s world-leading sports.
“We want to partner with Government to see the right, proportionate regulations, and a stable tax regime, which doesn’t hit customers, doesn’t raise the attraction of illegal operators, won’t risk jobs, but instead delivers on the Government’s new growth agenda.”
The full EY report can be found HERE
