BGC: Punters Cite Tax Fears as Black Market Risk Rises

A new YouGov survey commissioned by the Betting and Gaming Council (BGC) suggests that 65% of regular bettors believe increased taxes on sports betting could push consumers toward unregulated gambling markets.

The study follows the UK Government’s ongoing consultation on revising the tax structure for online gambling. Currently, remote betting and gaming are subject to different rates, but the Treasury is considering a consolidated model under a new proposal titled The Tax Treatment of Remote Gambling. Industry stakeholders have expressed concern that such changes could make regulated betting less competitive compared to unlicensed alternatives.

Of those surveyed, 23% indicated they believed a tax hike would have little impact on customer behaviour, while a majority cited increased risk of migration to untaxed platforms. The BGC has previously warned that additional fiscal pressure on its members could negatively affect consumer experience and undermine contributions to key sectors, including horse racing.

According to the BGC, an estimated £4.3 billion is currently wagered by UK consumers on black market platforms each year, involving approximately 1.5 million individuals. These operators do not contribute to tax revenues or sports funding and are not bound by UK safer gambling protocols.

The regulated igaming and betting industry in the UK is reported to support over 109,000 jobs, generate £6.8 billion in economic output, and contribute £4 billion in annual tax revenues. It also provides financial support to professional sports, including £350 million annually to horse racing through sponsorships, media rights, and the Levy, and additional funding to football, rugby league, darts, and snooker.

The consultation is part of broader reforms introduced in the Gambling Act review, with the Government seeking to balance consumer protections with a sustainable regulated market.

BGC CEO Grainne Hurst, said: “This shocking statistic proves what’s at stake if the Government forces through a self-defeating tax hike on ordinary punters.

“It’s clear it will not raise more tax, it simply risks forcing huge numbers of customers out of the regulated market, with its world leading standards on player safety, into the arms of the growing, illegal, unregulated and unsafe gambling black market online.

“Any tax rises would make a mockery of the Government’s growth strategy and be catastrophic for horseracing, which is already facing a bleak financial outlook.

“This is a wake up call for Government, punters have been loud and clear, hit them with further taxes and they will walk away from sports like racing, straight to the black market, triggering a spiral of decline.”

The YouGov survey asked punters, “imagine that betting on sports events like horseracing became more expensive because the government increased the amount of tax that betting companies have to pay.

“How likely or unlikely do you think it is, if at all, that this would make customers turn to unregulated betting sites that don’t have to pay any tax at all?”