BGC Boss Urges Caution in Rising Gambling Tax in the UK

The CEO of the Betting and Gaming Council, Grainne Hurst, has issued a cautionary statement to the Chancellor and the government of the United Kingdom, urging a balanced approach in regulating the gambling industry and not using it as a scapegoat for fiscal and monetary missteps.

UK Rumored Tax Hike Has Trade Groups Up in Arms

With a budget deficit yawning in the United Kingdom, Chancellor Rachel Reeves has turned to the gambling industry to fund an ambitious program to end child poverty.

However, this would come at a cost, and the long-term ramifications would see the industry pay less, not more, into the budget despite the short-term cash boost, while also endangering jobs and reducing tax receipts to the coffers.

The proposal that is being discussed suggests that the sports betting tax would climb to 30% from 15% previously, while the online tax on slots would skyrocket to 50% from 20% presently. Hurst has criticized the measure and reiterated the BGC’s well-established position – by raising tax, the government is pushing more people into the grips of offshore gambling, where consumer protection standards are lacking.

Hurst cited an independent study conducted by EY, which arrived at the following conclusions as per Hurst’s account: “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.”

The Economy Would Be Worse for Raising Gambling Taxes

Hurst further highlighted the contributions of the industry to the state budget already and the societal causes they invested in, not least the commitment to protecting consumers and improving guardrails around problem gambling.

Heavy taxation would most likely end up driving more people offshore as the regulated market would not be able to compete for them any longer, the CEO noted.

“Much is at stake in the Chancellor’s Budget. 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,” Hurst warned.