The UK’s gambling lobbyist group, the Betting and Gaming Council, has released a new report based on a YouGov poll. In both the poll and report, the BGC is now stating that it has “found 28 per cent of regular gamblers” would seek out illegal operators” to avoid paying tax on their winnings.
Another qualifier is that this apparent 28% of those polled would also move to offshore operators if they can get “better odds and promotions.” Unregulated online casinos are prevalent and are ever-increasing, especially as various technologies like virtual private networks can fake your location, unlocking access to unlicensed sites.
The main issue with unregulated online casinos is that they don’t offer the protections of other normal sites. While taxes can be avoided, if cash is lost or an issue arises, it can often lead to the gambler losing out entirely.
In the report, the BGC was concerned that “29 per cent would not be confident” when asked to identify a black market operator. Without doing the research themselves, either by checking on reporting or the UK Gambling Commission’s official database, many sites can simply get away with their operation.
At the end of it all, the group is mainly concerned that the government potentially raising taxes on gambling could drive people to these shady sites.
UK Betting and Gaming Council calls on government not to go all in on tax
Speaking in the report, the CEO of the Betting and Gaming Council, Grainne Hurst, said:
“Punters are clear, get the balance on tax and regulation wrong and you hand a competitive advantage to the black market where operators pay no tax, contribute nothing to British sport, and offer no safer gambling protections.
“The gambling black market is growing and actively targeting UK customers. Any tax rise, whether on betting or gaming, makes that offer more attractive and puts more players at risk.
“Any tax hike would be catastrophic. This would put thousands of jobs and millions in investment at risk, while threatening the future of all sports that rely on regulated betting for funding…
“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 the legal, regulated market, straight to the black market, triggering a spiral of decline which raises less tax, and undermines player protections.”
