The United Kingdom regulated gambling industry has issued a stark warning that a proposed tax increase could have severe unintended consequences, primarily by driving a significant number of consumers toward the unregulated black market.
The proposal, which would raise the tax on remote betting from its current rate of 15% to 21%, has been met with widespread concern from industry stakeholders who argue that it will ultimately undermine player protection and harm the UK economy.
The Betting and Gaming Council (BGC), representing the regulated sector, has emphasized that its members make substantial economic contributions through taxes, employment, and sponsorships.
The council argues that an overly punitive tax rate will make licensed operators less competitive compared to illicit sites that offer better odds and promotions by evading taxes and regulations.
This shift, the BGC warns, would not only reduce government tax revenue but also expose consumers to platforms that lack the responsible gambling tools and legal protections mandated in the licensed market.
Nowhere is the potential impact felt more acutely than in the British horse racing sector, which is bracing for a potential annual loss of £66 million.
The industry, which relies heavily on the betting levy, anticipates that the tax increase in the United Kingdom will lead to widespread job threats.
In response to the growing financial pressures and the proposed tax changes, the horse racing industry is reportedly planning a strike from midweek racing to highlight the sport’s precarious economic situation.
This collective action underscores the gravity of the situation and the belief that the proposed fiscal policy will backfire, causing more harm than good to a cornerstone of British sport and leisure.
