The UK-based Betting and Gaming Council (BGC) says a further tax raid would risk over 40,000 jobs, channel £8.4 billion ($11.2 billion) in stakes to the black market, and wipe £3.1 billion ($4.1 billion) off the sector’s UK economic contribution.
This comes as a tax reform on gambling has become a major concern for the industry, with rumors that some changes could potentially be seen in the upcoming budget in November.
In August, a think tank, called IPPR, called upon the UK government to significantly increase gambling tax, as a means to reduce child poverty. The former British Prime Minister and long-time Chancellor, Gordon Brown, has supported the proposals. In response, the Betting and Gaming Council released a strong statement rejecting the findings.
Now, BGC has commissioned research which suggests the results would be damning. Its own members are said to currently contribute £6.8 billion ($9.1 billion) to the UK economy, pay £4 billion ($5.3 billion) in tax, and support over 109,000 jobs across the country.
Betting and Gaming Council suggests impact of tax hike could be stark
Grainne Hurst, Chief Executive of the BGC, said: “It is now clear these further tax rises are a direct threat to British jobs and economic growth.
“The figures speak for themselves – tens of thousands of jobs lost, billions diverted to the black market, and a possible £3 billion hit to the economy.
“Tax raids like those proposed would mean fewer betting shops, casinos and bingo halls, fewer jobs, and a huge boost to the growing, unsafe gambling black market, while not raising anywhere near the tax claimed.”
The bookmakers in the UK currently pay tax on Gross Gambling Yield at 21% for online games like bingo, 15% for sports betting and 20% for machine betting. Some who are championing a tax rise have recommended rates of 50% for online gaming and 25% for sports betting.
Hurst added: “Balanced regulations and a stable tax regime guarantee a growing regulated sector. But these proposals would achieve the absolute opposite of that and undermine the very consumer protections that keep people safe by pushing customers towards the unregulated black market, where there are no safeguards, no tax receipts, no jobs, and no support for the sports we all love.
“Britain’s betting and gaming sector is a world leader – employing thousands, paying billions in tax, and investing in British sport. The choice is clear: back a successful, sustainable, regulated British industry – or risk losing jobs, investment and growth.”
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