UK MP Warns Tax Increase May Threaten bet365’s Future
Concerns Raised Over New Gambling Tax Impacting bet365
A prominent Conservative Member of Parliament in the UK has raised serious concerns about the government’s recent decision to significantly raise gambling taxes. This move poses a risk to bet365, a major gambling company and key employer in Staffordshire, potentially leading to widespread job cuts within the sector as companies seek to reduce costs.
bet365: A Pillar of Stoke-on-Trent’s Economy
Sir Gavin Williamson, speaking during a recent Budget discussion in the House of Commons, highlighted the threat posed by the sharp increase in online gambling taxes. He warned that bet365’s headquarters in Stoke-on-Trent, which employs approximately 5,500 people and stands as the city’s largest private employer, could face significant job losses.
Starting April next year, the government plans to raise the tax on online gambling from 21% to 40%, with a further increase set for 2027, where the tax on digital sports betting will rise from 15% to 25%. While horse racing will avoid these hikes, most other online betting products will be affected.
Williamson emphasized that such taxation threatens a company that has played a crucial role in revitalizing Stoke-on-Trent’s economy after the decline of traditional industries like pottery and coal mining. bet365 has become one of the few sources of well-paying, skilled employment in the region.
“This budget could potentially destroy one of our most successful technology sectors.”
Sir Gavin Williamson
Industry Struggles to Cope with Tax Changes
The government itself recognizes that changes in consumer behavior may reduce expected tax revenues by up to one-third, as players either cut back their spending or turn to unregulated offshore gambling sites. Sir Gavin warned that these tax hikes could end up harming a vibrant industry without generating the anticipated financial returns.
“bet365 has been one of the most responsible employers, investing in the local community, supporting charitable causes, and paying its taxes here in the United Kingdom.”
Sir Gavin Williamson
Industry representatives, including the Betting and Gambling Council’s CEO Grainne Hurst, have described the tax increases as a severe blow. Gambling companies across the UK are now urgently adjusting their bonus schemes, marketing expenditures, and staff levels in preparation for these changes.
Experts worry that operators may not manage to fully offset the impact through internal savings alone, and that the financial burden might lead to reductions in workforce, customer rewards, and product development. For Staffordshire, this poses a serious threat beyond the gambling world, as Sir Gavin highlighted that setbacks at bet365 could reopen long-healed economic challenges in the area.
