Grainne Hurst, Chief Executive of the UK gambling industry’s representative Betting and Gaming Council (BGC), has slammed the Labour government’s impending iGaming tax hikes as dangerously counter-productive and a boost for the black market.
In a controversial November 26 Autumn Budget, under-fire Chancellor Rachel Reeves announced significant new levies on online gambling – purportedly to help pay for welfare to raise an estimated 500,000 UK children out of poverty.
But the headline tax hike–with remote gaming duty set to rise to 40 percent from 21 percent this April–will only drive even more punters to clandestine gambling, away from responsible and safer gambling protocols and protections, and, if anything, lose the government millions of pounds of revenue, said Hurst.
Data Dive
New polling suggests the Government’s own gambling strategy could increase the very harm it says it wants to stop, the BGC claimed yesterday (Feb 26).
They released the findings of a new poll by data company Anacta to support their argument.
It found:
- 52 percent of people who bet believe higher taxes will make punters more likely to use unlicensed black market sites
- 66 percent of those who bet say tax increases will make betting and gaming less enjoyable
- 57 percent think UK gambling is already heavily regulated
Consumer Protection
Asserted Hurst: “Around 22.5 million adults place a bet each month. When you tax responsible, regulated betting and gaming companies harder, you do not reduce demand, you simply drive customers towards the unsafe, unregulated black market.
“Illegal gambling sites do not pay tax. They do not contribute to British sport. They do not invest in safer gambling and they do not protect vulnerable people.
“If the Government wants growth and genuine consumer protection, it must back the regulated sector, not make it less competitive against criminals.”
According to BGC statistics, Britain’s regulated gambling sector supports 109,000 jobs, contributes £6.8 billion (US$9.16bn) to the economy and generates £4 billion (US$5.39bn) in tax revenue, funding everything from the National Health Service, to schools and local communities.
