The leader of Britain’s main betting industry group has come under fire after telling MPs that gambling does not cause “social problems.” Grainne Hurst, who runs the Betting and Gaming Council (BGC), said this to the Treasury select committee this week, asking the government not to hike taxes on gambling in next month’s budget.
Industry Leader Warns Higher Gambling Taxes Could Cost Jobs and Sports Funding
Hurst said the industry already pays fair taxes and cautioned that any more increases might lead to job losses, put high street betting shops at risk, and cut down on sports sponsorships. She also claimed that higher taxes could drive gamblers to use unregulated websites based overseas.
Committee members looked shocked by her remarks, with chair Meg Hillier asking her to verify if she thought gambling caused no social harm, reported The Guardian. Hurst replied that she did not, stressing that the industry takes every possible action to reduce risks.
Her comments came as the government thinks about increasing taxes on high-risk gambling products, online casinos, and gaming machines. Several big bookmakers have already cautioned about closures if the chancellor, Rachel Reeves goes ahead with tax increases. Betfred said it might close all 1,287 of its high street shops, while William Hill’s parent company has hinted that up to 200 shop closures could happen.
EY Report Supports BGC’s Stance Against Gambling Tax Increases
Trade groups have backed the BGC’s position. A previous study by EY, a consulting firm hired by the council, cautioned that plans from two economic research centers — the Social Market Foundation (SMF) and the Institute for Public Policy Research (IPPR) — might cut up to 40,000 jobs and remove GBP 3.1 billion ($4.1 billion) from the UK economy. The report also suggested that up to GBP 8 billion ($10.6 billion) in bets could shift to illegal gambling if taxes went up a lot.
EY says the proposed changes, like hiking online gaming taxes from 21% to 50%, would bring in much less money than supporters claim, once you factor in the broader economic impact. Hurst pointed to these findings to show why the government should focus on long-term stability instead of quick cash grabs.
However, not everyone who spoke agreed with the BGC‘s rosy outlook. Stewart Kenny, who used to work for Paddy Power, told MPs that gambling companies push casual bettors towards more addictive products. He described it as a system set up to increase risk. He called on lawmakers to slap higher taxes on the most dangerous types of gambling.
Following the hearing, Hillier expressed shock at industry leaders’ refusal to recognize gambling-related harm, labeling their stance as indefensible. With the November budget on the horizon, this disagreement underscores a growing divide between policymakers looking to generate new tax income and an industry set on protecting its earnings and reputation.