BGC CEO Unamused at Reported Gambling Tax Hike Proposal  

Britain’s plans to introduce a tax hike do not sit well with the Betting and Gaming Council, which argued that the new proposals are based on “fantasy economics.” In an interview with gaming news outlet NEXT.io, CEO Grainne Hurst expressed her concerns about the mulled tax changes, saying they could harm the legal industry.

Hurst Attributed the Proposal to Anti-Gambling Activists

Hurst’s displeasure follows a recent article by The Guardian, which suggested that the UK Treasury is considering an increase in gambling taxes. Lawmakers allegedly intend to raise up to £3 billion via this reported tax hike proposal.

The Guardian further reported that the mulled tax hike aligns with a recent proposal from the Institute for Public Policy Research (IPPR), which promotes much heftier taxes. According to the report, the general betting taxes could increase from 15% to 30%. Online gambling taxes, on the other hand, could skyrocket to a whopping 50% (currently 21%).

Hurst told NEXT.io that she believes this speculation around taxes is being driven by anti-gambling campaigners. She accused the measure of being based on unsustainable “fantasy economics” and said that such a measure could harm the regulated market.

I want to be very clear with Government: any further tax rises will not only slam the brakes on growth for our sector, but it will threaten jobs and completely derail horseracing.

Grainne Hurst, CEO, BGC

The British Industry Doesn’t Need Extra Pressure Right Now

For context, BGC members currently contribute some £7.1 billion to the economy and generate £4.2 billion in tax revenue. In addition, the sector provides jobs to some 110,000 people.

In the meantime, recent studies suggested that UK players already spend some £4.3 billion on unregulated black market operators every year. Hurst and her team fear that disproportionate taxation risks undermining the legal market’s ability to compete with its offshore competitors.

Hurst firmly pointed out that balanced regulation and a proportionate tax regime should be the way to go, lest Britain loses more players to the dangerous black market. The white market measures will already present some challenges to the industry, she added, especially the new RET levy.

Hurst said that what the UK market needs right now is stability to deliver sustainable investment. She concluded that now is not the time to ramp up the pressure on the market and the players who enjoy gambling safely.

In other news, the BGC just teamed up with the AGA and the ECA to combat global gaming challenges.