Betting and Gaming Council Warn Further Tax Increases Will Hit Customers, Prevent Growth, Cost Jobs and Bolster Black Market Gambling

STANDARDS body the Betting and Gaming Council have warned further tax rises threaten to bolster the illegal gambling black market while undermining the regulated sector’s significant economic contributions.

Ahead of the Budget, new figures compiled by leading consultants EY confirm BGC members generate £6.8bn for the economy in Gross Value Added, raise a further £4bn in tax to the Treasury, while supporting 109,000 jobs.

The regulated betting and gaming sector supports the UK’s hard-pressed high streets through bookmakers, provides a vital pillar to the leisure and tourism sector through casinos, and a growing number of high value jobs in bases like Stoke, Leeds, Sunderland, Warrington, Nottingham and Newcastle Under Lyme.

They also pour millions into sports including horseracing, rugby league, football, snooker, darts and boxing.

But tax increases, combined with the impacts of last year’s White Paper on gambling reform, and the threat of the growing unsafe, unregulated gambling black market, could undermine that continued investment while threatening growth and jobs.

According to previous Government figures, the White Paper measures, many of which the BGC called for to raise standards, will cost the sector around £1bn.

While comparable markets in Europe which have increased taxes on regulated operators, have seen an immediate rise in black market gambling, which pays zero tax, does not contribute to sport and makes no effort on player protection, leading these markets to also have higher rates of problem gambling.

A recent study commissioned by the BGC found 1.5m Brits are annually staking up to £4.3bn on the illegal, unregulated gambling black market.

Meanwhile, the current economic headwinds – which are set to continue – have also hit customer’s pockets hard, including their financial freedom to spend on hobbies like betting.

BGC CEO Grainne Hurst said: “Our sector is at a crossroads as we seek to implement the measures contained in the White Paper and deliver a new era of stability and growth so we can continue making significant economic contributions to the country.

“After so many years of uncertainty, this sector needs stability to deliver sustainable investment, not further change which threatens to undo that contribution.

“Any new taxes now, at any scale, at this critical juncture risks undermining that good work while giving a leg-up to the lurking menace of the black market, which is ready to hoover up disaffected customers sensitive to any degrading of the offer they get in the regulated sector.

“Customers have been hit hard for years, with extreme pressure on the cash they have left in their pockets, once bills and taxes are paid, to enjoy their hobbies including having a flutter. We don’t want to see the pressure on working people ramped up.

“Regulated betting and gaming remains a hugely popular pastime in this country, enjoyed safely by the overwhelming majority, while our members are a Great British export and genuine global leaders, delivering enormous economic good in city centers, on high streets and in the growing online sector. That investment positively impacts other sectors too, with BGC members pouring millions into Britain’s world leading sports.

“We want to partner with Government to see the right, proportionate regulations, and a stable tax regime, which doesn’t hit customers, doesn’t raise the attraction of illegal operators, won’t risk jobs, but instead delivers on the Government’s new growth agenda.”

The White Paper – billed as a “once in a generation” moment for reform – announced measures including an Ombudsman to improve consumer redress, new online stake limits, modest casino modernisation plans and a new levy to fund Research Prevention and Treatment (RPT) services to tackle problem gambling and gambling related harm.

BGC members voluntarily donated over £170m to this work over the last four years – supporting a mature network of independent charity providers – including £50m last year alone.

The new statutory RPT Levy is expected to raise £100m a year when introduced.

BGC members also contribute around £100m a year to the Horserace Betting Levy to improve breeding, advance veterinary science in the sport and contribute to the wider improvement of horseracing.

The new research by EY also tracked trends in the sector, confirming Gross Gambling Yield from online betting and gaming has remained steady, while marking the significant pressures facing land-based bookmakers and casinos.

The number of casinos has fallen in recent years, from 156 in 2019 to 117 now, including the loss of five high-end casinos.

There are also currently 5870 bookmakers in the UK, with 2485 closures since 2019, a 28% reduction, prompted by regulatory changes and the lingering effects of the Covid pandemic.

The BGC has previously called on Government to introduce the modest but mission critical modernisation plans needed for the land-based sector to compete and offer the experience their customers expect.