BGC Criticizes UK’s Autumn Budget for Impact on Gaming and Horseracing
British Gaming and Betting Council Voices Concern Over Autumn Budget
The British Gaming and Betting Council (BGC) has voiced strong opposition to the UK Chancellor’s recent Autumn Budget, warning that it poses serious threats to the horseracing industry despite claims suggesting otherwise.
Critical Reaction from the BGC Leadership
Grainne Hurst, CEO of the BGC, issued a firm warning regarding the budget, challenging the notion that it is favorable for the horseracing sector. She highlighted the potential for significant job losses as a result of the proposed fiscal changes.
Substantial Tax Increases Targeting Gaming and Betting
The budget introduces what Hurst describes as one of the most significant tax increases seen by any industry in recent times. Specifically, the UK government aims to nearly double the tax on online gaming from 21% to 40%, while also raising the sports betting duty from 15% to 25%. These changes would position the UK as having one of the highest online casino tax rates in Europe.
Although the Treasury anticipates collecting an additional GBP 1.1 billion in tax revenue, Hurst emphasized that these increases are not harmless fiscal measures but pose real risks to the industry.
Long-Term Damage to Horseracing and Related Sports
Despite the apparent exemption of horseracing from increased betting duties, the BGC leader described this as merely superficial. She warned that the budget ultimately undermines the financial ecosystem supporting horseracing and other sports.
“This exemption is cosmetic. Beneath the surface, this Budget delivers a devastating blow to the very ecosystem that racing relies on.”
Grainne Hurst, CEO of BGC
Risk of Job Losses and Market Contraction
Hurst reiterated earlier warnings about the negative impact higher taxes would have on the competitiveness of the regulated gaming industry. She cautioned that this could drive users towards unregulated, potentially harmful black market operators, who might be encouraged to operate outside the legal framework.
The Treasury expects an increase of GBP 500 million in unlicensed gaming activities but has allocated a meager GBP 26 million to address this surge—a sum which Hurst called grossly inadequate.
Furthermore, she warned that the industry could face widespread job losses, estimating that around 17,000 positions could be at risk. Such cuts would affect not only iGaming and sports betting but would also ripple through the horseracing community.
Misleading Claims of Support for Horseracing
According to Hurst, calling the budget favorable to horseracing is deceptive because the sector depends heavily on revenue generated through betting. A decline in the betting market inevitably reduces funding for sponsorships, media rights, and the industry’s levy.
“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, CEO of BGC
Concerns Over Timing Amid Regulatory Changes
The timing of the tax increases is particularly troubling given ongoing gambling reforms and the rollout of white paper initiatives aimed at improving the sector’s regulation and safety.
Potential Winners and Losers
Hurst argued that the black market stands to gain substantially from the budget changes, while British consumers and the regulated gaming industry are the likely losers.
BGC’s Commitment and Recommendations
The BGC remains willing to collaborate with the UK government to ensure safe, regulated gaming environments. However, Hurst stressed that such cooperation requires policies that bolster the regulated market’s health and sustainability, conditions that the current budget fails to meet.
