BGC Scrutinizes UK’s Autumn Budget, Says It Would Hurt Gaming & Racing

The British Gaming and Betting Council (BGC) has expressed significant concern about the Chancellor’s Autumn Budget. According to the council, the new budget will be a disaster for the horseracing industry, despite claims on the contrary.

The BGC Was Not Pleased with the Budget

Grainne Hurst, the BGC’s CEO, has issued a stark warning over the new budget, slamming the fact that it is being bitched as good news for the racing industry and warning that it could actually lead to significant job cuts.

For context, the new budget has resulted in what Hurst called one of the largest tax hikes on any industry in modern days. For context, the UK seeks to almost double the iGaming tax from 21% to 40% and increase the sports betting duty from 15% to 25%. If the rises happen, the UK will have one of the highest online casino duties in Europe.

While the British Treasury expects GBP 1.1 billion in extra tax money, Hurst warned that these are “not harmless revenue raisers.”

Hurst described the Autumn Budget as a major setback not only for horseracing itself but all the sports supported by the broader betting industry. While the budget seemingly exempts horseracing from higher betting duties, the BGC CEO noted that the budget would still hurt the sector.

This exemption is cosmetic. Beneath the surface, this Budget delivers a devastating blow to the very ecosystem that racing relies on.

Grainne Hurst, CEO, BGC

Thousands of Jobs May Be Lost

Hurst reiterated some of the BGC’s previous warnings, saying that the higher taxes would make the legal gaming industry less competitive, resulting in a potential user drain to the more dangerous black market. Operators, meanwhile, might be convinced to exit the regulated market and do their business “from the shadows.”

For context, the Treasury has predicted a GBP 500 million increase in unlicensed gaming. It has, however, allocated only GBP 26 million to combat it, which Hurst called “a drop in the ocean.”

In addition to that, Hurst predicted significant industry-wide job cuts that would indirectly undermine not only iGaming and sports betting but also horseracing. She said that a total of 17,000 jobs would be at risk.

Calling the Budget Racing-Friendly Is Misleading

After listing the perceived dangers, Hurst said that labeling the budget a win for the horseracing industry is dangerous, since racing cannot thrive if betting is pushed into decline.

Against this backdrop, the idea that racing has won anything is dangerously misleading. Racing may have avoided a direct betting duty rise, but it will still feel the consequences. Betting operators fund sponsorships, media rights and the levy; when the regulated sector contracts, that funding contracts with it.

Grainne Hurst

Hurst added that the timing of the planned tax hike is especially bad, considering the continued gambling reforms and the ongoing implementation of the white paper measures.

Hurst added that the only winner from the Autumn Budget is not the horseracing industry but the black market, which has essentially “hit the jackpot.” The biggest losers, on the other hand, would be the British customers, the BGC’s CEO said.

Hurst concluded that the BGC is ready to work with the UK government to deliver safe and enjoyable gaming. However, she noted that this requires policies that strengthen the regulated market and ensure it remains healthy – something that she doesn’t believe the current budget does.