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BGC Urges UK Chancellor to Drop the Proposed New Gambling Tax Simplification Measure
The Betting and Gaming Council (BGC) has urged the UK Chancellor against using a proposed new gambling tax simplification measure to further raise taxes which will threaten sports including horse racing.
In the Autumn Statement, the Government confirmed it will consult on new proposals to bring remote betting into a single tax, replacing the current three-tax structure.
General betting duty and pool betting duty are set at 15% of operator profits, but remote gaming duty, levied on games of chance such as online casino, is set at 21%.
Any hike in betting duty would likely lead to lower margins on racing, fewer offers for punters and less funding to sponsor and promote the sport.
The tax threat comes as revenues are already being stretched by so-called affordability checks on customers, plans to replace the current voluntary levy with a new statutory levy to fund Research, Education and Treatment to tackle gambling related harm and spiraling costs for betting operators to support horse racing.
Michael Dugher, Chief Executive of the Betting and Gaming Council, said: “Any further new tax rises could be a hammer blow for horse racing’s finances, which are already threatened thanks to measures proposed by the Government in the recent white paper.
“This is a sport which relies heavily on betting operators for its success and yet the Government appears determined to draft in measures which shrink the industry with huge ramifications for other sectors, like horse racing.
“What’s worse, the Treasury didn’t bother to consult or even inform DCMS, which is the department responsible for betting and racing. It seems they are high on tax but low on joined up government.
“There are genuine fears that any so-called simplification of the current tax structure will be nothing more than a Trojan Horse to further raise taxes on businesses.
“This has the potential to risk jobs and investment, and undermine the competitiveness of British horse racing on the global stage, placing its rich history and heritage in peril.
“We were promised an Autumn Statement that would deliver growth – the only thing growing is the list of worries for the betting and horse racing industries”.
The proposed new tax simplification plan comes soon after the Government’s White Paper, published in April, which included measures that will cost online operators in excess of £895m in Gross Gambling Yield.
And comes as bookmakers are preparing to make a record contribution to horse racing next year – with the bill for media rights forecast to increase by nearly £30m.
The Betting and Gaming Council’s five biggest members for horse race betting, Entain, Flutter, bet365, 888/William Hill and Betfred, expect to see a record cost increase to broadcast races.
In 2022, BGC members paid £270.1m for the rights to live stream races for customers and show them in bookmakers.
But that cost is forecast to rise to £285.3m this year, an increase of 5.6%, with members estimating a further increase to £315.2m in 2024, a further bump of 10.5%.
The forecast costs come after the BGC announced their members directly contributed £384m to British horse racing last year in levy, media rights and sponsorship deals.
In addition, bookmakers spent £125m on marketing to promote racing and betting through advertisements and partnerships.
Horse racing is the second biggest sport in the UK, second only to football, with more than five million people attending around 1400 fixtures annually across 59 racecourses.
However, its popularity is in decline. In 2007, 17% of the population participated in horse race betting in the previous year, but that fell to 10% in 2018.
The Department for Culture, Media and Sport has committed to reviewing the Horseracing Levy by next year.
The Horseracing Levy, which is administered by the Horserace Betting Levy Board, goes towards improving the sport, breeding and boosting veterinary care.
Betting operators are working closely with the British Horseracing Authority and racing stakeholders on much needed reforms to the fixture list and race programme which should increase commercial returns from the levy and media rights.
Betting shops support 42,000 jobs on the UK’s hard-pressed high streets, generating £800 million a year in tax to the Treasury and another £60m in business rates to local councils.
But this contribution is under threat, the combined impacts of recent regulatory reforms and Covid lockdowns have forced the closure of over 2000 shops with the loss of 10,000 jobs since 2019.
The wider regulated betting and gaming industry contributes £7.1bn to the economy, generates £4.2bn in tax and supports 110,000 jobs.
The BGC has repeatedly warned changes to the regulated betting and gaming sector by the Government must not risk forcing customer to the unsafe gambling black market online.
A study by PWC showed the number of customers using an unlicensed betting website has grown from 210,000 to 460,000 and billions is being staked.
Each month in Great Britain around 22.5m adults have a bet and the most recent NHS Health Survey for England estimated that 0.4% of the adult population are problem gamblers.
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7-Eleven selects Jackpot.com as their official lottery partner
Online Lottery Courier Service Jackpot.com Announces Exclusive Collaboration with 7-Eleven, Inc.
Jackpot.com will serve as the official lottery courier service of 7-Eleven, Inc., initially launching in Ohio and Massachusetts
Jackpot.com – the online lottery courier service that allows consumers to purchase official state lottery tickets on their phone, tablet, or computer – announced today an exclusive collaboration with 7-Eleven Inc., the largest convenience store chain in the world, to serve as their official lottery courier service.
As part of the collaboration, 7-Eleven customers in Ohio and Massachusetts will be able to sign up and play lottery games and scratchers on the Jackpot.com app or website. The program will initially be launched in over 600 7-Eleven and Speedway stores in Ohio and Massachusetts, with a special launch promotion that gives 7-Eleven customers a free lottery ticket on their first deposit by using promo code, “7Eleven”.
“We’re thrilled to work with 7-Eleven, the leading retailer of lottery tickets in the country,” said Akshay Khanna, CEO and co-founder of Jackpot.com. “Leveraging our technology and innovation, we can provide additional convenience for their customers, while adding an additional source of revenue. A true win-win relationship for all.”
By launching in Ohio and Massachusetts in 2023 and 2024, respectively, Jackpot.com aims at adding another avenue for player convenience with one of the most widely recognized brands in the convenience-retailing space. With a presence in Ohio, the nation’s seventh-largest lottery market, and Massachusetts, whose state lottery produced $1.2 billion in net profit for the Commonwealth during the 2024 fiscal year, Jackpot.com’s collaboration with 7-Eleven represents an added layer of accessibility for players.
Jackpot.com remains committed to responsible play and has significantly invested in protocols by allowing customers of legal age to set spend limits and limits on daily deposits, all while providing access to local and national responsible gambling resources, self-exclusion, self-suspension and automated notifications that offer help should problematic behavior be detected. Jackpot.com is also the only lottery courier service to launch with an iCap certification from the National Council on Problem Gambling.
To learn more, visit jackpot.com. First-time users can also download the official Jackpot.com Lottery App on the iOS or Android App Stores, where available.
eSports
The World Esports Summit 2024 Is Here!
The IESF World Esports Summit returns this December to Busan, South Korea. Hosted at the Busan Esports Arena (BRENA) from December 5-6, the Summit will bring together prominent figures from Esports, global brands, government officials, and sports executives for a deep dive into the current Esports trends, its rapid transformations, and future challenges.
This year’s theme, “Building Bridges, Not Barriers, Through the Power of Esports,” will highlight the role of Esports in uniting cultures, ideas, and industries. Under the slogan “We Empower Success,” the
Summit provides a great platform for Esports experts to engage in meaningful discussions and sessions, sharing their insights on trends and presenting forward-looking ideas for our industry.
The event, strategically timed at the close of the competitive season, presents a perfect environment for reflection on the year’s biggest events, industry shifts, and the next steps for Esports. Attendees can follow the expert’s perspectives on topics like:
- (R)Evolution in Esports
- East Meets West
- Esports Integrity: The Role of Referees
- The Rise of International Esports Competitions
- (In Korean) Korea’s Secret Sauce etc.
Also, featured at this year’s event are the IESF World Esports Training Camp and the World Esports Referee Academy.
These are very important IESF programs that are aimed at advancing the skills and professional standards of the next generation of Esports leaders.
Join us in Busan for two days designed to inspire, connect, and empower the international Esports community.
Registration for the World Esports Summit is free and open to all interested attendees.
To register, please complete our online registration form: iesf.formstack.com/forms/wes2024_participation_registration
See you in Busan!
eSports
Akhil Sarin CMO at Easygo named as key note at ICE Esports Conference
Clarion Gaming has confirmed that Akhil Sarin CMO at Easygo, the technology powerhouse behind the success of global brands Stake and Kick will headline the Esports & Games Conference (EGC) taking place on 21 January as part of the ICE Barcelona experience. As a key member of the executive team, Akhil Sarin has been instrumental in securing the high-profile partnerships that have accelerated Stake’s growth, including the Stake F1 team, UFC, Drake, and Premier League Everton FC.
Through these strategic alliances he has amplified Stake’s brand presence at the same time as creating unique, immersive player experiences, in the process setting new industry benchmarks.
Announcing the high profile speaker Will Harding, Head of Esports at Clarion Gaming said: “Securing Akhil Sarin as EGC key note at ICE Barcelona represents a remarkable opportunity for our attendees to gain invaluable insight into cutting-edge strategies in digital and influencer marketing .
“Akhil’s expertise with Stake and Kick.com embodies the forward-thinking, innovative approach that defines the digital marketing landscapes. His participation underscores the calibre of knowledge-sharing that we are committed to delivering at ICE and he is sure to both inspire our attendees and elevate their strategic perspective.”
Looking ahead to ICE Barcelona, Akhil Sarin stated: “Collaborating with Clarion Gaming at ICE Barcelona is an exciting opportunity to showcase Stake’s journey and continued focus on bold partnerships and creative marketing strategies that resonate with audiences.”
He added “The EGC is a vital platform for exchanging transformative ideas and shaping the future of gaming and entertainment. I look forward to discussing Stake’s vision and collaborating with industry leaders to inspire growth and innovation across the sector.”
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