BGC Boss Warns Against Steep Increase in UK Gambling Taxes

Call for Balanced Gambling Regulation

Grainne Hurst, CEO of the Betting and Gaming Council (BGC), has urged the UK government and Chancellor to adopt a measured approach when considering changes to gambling regulations. She emphasized the importance of not unfairly targeting the gambling sector as a solution to the country’s financial challenges.

Controversy Over Proposed Tax Increases

Amidst concerns about the UK’s growing budget deficit, Chancellor Rachel Reeves is proposing to increase taxes on the gambling industry to fund initiatives aimed at eradicating child poverty. While this policy could provide a short-term boost in revenue, experts warn the long-term effects might be detrimental to government income and the gambling sector’s vitality.

The proposed changes involve raising the sports betting tax rate from 15% to 30%, and the tax on online slot games potentially surging from 20% to as much as 50%. Hurst argued that such steep hikes risk driving gamblers towards offshore operators, where consumer protection is weaker.

Referencing an independent study conducted by EY, Hurst explained that these proposals could threaten over 40,000 jobs, divert £8.4 billion of gambling stakes toward illegal markets, and slash £3.1 billion from the gambling industry’s contribution to the UK economy.

Consequences for the Economy and Consumer Protection

Beyond financial contributions, the gambling industry already invests heavily in social causes, particularly initiatives aimed at responsible gambling and consumer safeguards. Hurst warned that excessive taxation could undermine these efforts by pushing players away from regulated platforms.

She stressed that increasing taxes aggressively might backfire, as the domestic regulated market would struggle to compete with offshore alternatives, resulting in a loss of government revenue and diminished protection for consumers.

“There is much at stake with the Chancellor’s upcoming budget,” Hurst stated. “A misstep could harm jobs, economic growth, and the very framework that promotes safer gambling. To protect consumers and foster a robust, responsible industry, it is essential that players remain within the regulated environment.”