The Betting and Gaming Council (BGC) has strongly endorsed the concerns raised by UK Members of Parliament regarding the Treasury’s plan to significantly increase gambling taxes.
The proposed fiscal changes, set to take effect this April, will see Remote Gaming Duty almost double from 21 per cent to 40 per cent. Furthermore, the tax rate for online sports betting is scheduled to climb from 15 per cent to 25 per cent by April 2027.
Parliamentary Concerns Over Job Losses
During a heated debate in the UK Parliament on the Finance Bill last week, multiple MPs argued that such drastic levies could inadvertently cripple the regulated sector while fueling the unregulated black market. Grainne Hurst, CEO of the BGC, welcomed this political scrutiny, reinforcing the industry’s stance that the tax hikes are economically dangerous.
“MPs were right to highlight the real-world consequences of further gambling tax rises which will result in job losses, shop closures and will drive customers towards the unsafe and harmful black market,” Hurst stated. She emphasized the economic footprint of the sector, noting, “The regulated betting and gaming industry currently supports 109,000 jobs across the country, contributes £4bn in tax and plays a vital role in funding sport, charities and safer gambling.”
Treasury Justification vs. Industry Reality
The debate highlighted a fundamental disagreement on consumer behavior. Chancellor Rachel Reeves justified the measures in her November Budget by labeling remote gaming as “associated with the highest levels of harm.” However, James Wild, the shadow exchequer secretary to the Treasury, countered this logic during the session.
“When taxes rise too far, behaviour can change and the yield can go down,” Wild argued. “Rather than reducing demand, activity will move to unregulated markets where consumer protections are weaker, fraud risks are higher, and tax revenue is not collected.”
The BGC argues that undermining the regulated sector hands a strategic advantage to illegal operators who pay no tax and adhere to no safety standards. “We urge the government to take an evidence-led approach that supports jobs and growth, protects funding for charities and avoids rewarding the illegal and harmful black market,” Hurst concluded.
