The CEO of the UK’s Betting and Gaming Council has outlined a warning that £8.4 billion ($11.1 billion) in bets could go to the black market if the proposed tax hike goes ahead.
On the heels of its warning about the potential impact on jobs at the end of last month, the CEO of the Betting and Gaming Council, Grainne Hurst, shared an open warning on November 7 to the Chancellor and the UK government about concern around the proposed gambling tax hike in the Autumn Budget.
Chancellor Rachel Reeves has hinted that UK gambling firms could expect to see big tax humps on sports betting, online or in betting shops, excluding horse racing, with rates rising from 15% to as high as 30%, while online slot taxes could climb from 20% to 50%.
Industry leaders have been quick to rally against the proposed plans, with one of the UK’s largest bookmakers, Betfred, warning that such a move could result in all its high-street shops closing down. Now, Hurst is also adding her voice to the criticism, warning that further tax increases would not only directly impact UK businesses but also put consumers at risk. This comes after Hurst referred to those at risk of gambling harms as a small minority while giving evidence to the Treasury Select Committee last month.
“Further tax increases on the regulated online sector risk undermining consumer protections by pushing players towards the unsafe, unregulated black market, while reducing Treasury revenues and cutting the vital funding our members provide to British sport, including horse racing, football, rugby league, darts, and snooker,” she wrote in the article published by the BGC. “Independent analysis by EY shows such proposals could put over 40,000 jobs at risk, divert £8.4 billion in stakes to the black market, and wipe £3.1 billion from the sector’s contribution to the UK economy.”
Hurst addressed many of the concerns around supporting gambling businesses, underlining how BGC members invest their profits into protective measures to reduce gambling-related harm. As with other UK businesses, the BGC also underlined how they contribute to the UK economy through taxes already, while also providing hundreds of thousands of jobs.
In terms of the current level of taxation on UK gambling firms, Hurst argued that companies are already “already highly taxed” and “highly regulated.” Currently, all online betting and gaming in Britain is taxed on a ‘point of consumption’ basis, so any bet placed by a UK customer is taxed at the point of sale, no matter where the operator is based.
In real numbers, BGC members contribute £6.8 billion ($9 billion) to the economy, generate £4 billion in tax, and support 109,000 jobs, according to data cited by Hurst.
“Much is at stake in the Chancellor’s Budget,” she concluded. “Get it wrong, and it’s not just jobs and growth that will suffer, it’s safer gambling itself. To protect consumers and support a safer, stronger industry, we must keep gamblers playing within the regulated market.”
Featured image: Canva
