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The Betting and Gaming Council (BGC) has warned that a potential rise in UK gambling taxes could strip £3.1bn from the economy and cost up to 40,000 jobs.
Economic warning ahead of UK budget
The warning comes just weeks before the UK government is expected to outline new gambling tax plans in the November 26 budget.
Although no final decision has been announced, several proposals have surfaced that would raise existing betting, gaming, and remote gambling duties.
The findings were published in a report by consultancy EY-Parthenon, commissioned by the BGC and titled “Impacts of Changes to Betting and Gaming Regulation.”
It modelled multiple tax scenarios, including raising all three core duties, general betting, remote gambling, and machine gaming.
According to the analysis, aligning all tax rates at higher levels could increase government revenue in the short term but risk accelerating growth in the black market, reducing long-term tax receipts and employment.
Potential job losses and black market growth
The report estimated that aligning all duties at 21% would raise an extra £250m but could also increase black market betting by £400m.
That shift could erase any tax benefit and result in the loss of nearly 3,000 jobs.
A steeper proposal, suggested by the Institute for Public Policy Research (IPPR), would lift betting and gaming duties to as high as 50%. Under that model, total gross value added (GVA) would fall by £3.1bn, while job losses could reach 40,000 across the sector.
Meanwhile, a plan from the Social Market Foundation (SMF) to raise remote gambling duty to 50% and betting duty to 25% would draw an additional £1bn in tax under moderate conditions. But under higher elasticity, the same plan could trigger £8bn in illegal market growth and more than 30,000 job losses.
Industry leaders call tax hikes a ‘direct threat’
BGC CEO Grainne Hurst said the findings show how tax hikes would put the entire sector, and its workforce, at risk. Hurst said:
“Figures speak for themselves. Tens of thousands of jobs lost, billions diverted to the black market and a possible £3 billion hit to the economy.”
She warned that such increases would hit betting shops, bingo halls, and casinos hardest, while pushing more players toward unregulated operators. She remarked:
“Tax raids like those proposed would mean fewer betting shops, casinos and bingo halls, fewer jobs and a huge boost to the growing, unsafe gambling black market, while not raising anywhere near the tax claimed.”
Calls for balance and regulatory stability
Hurst urged the government to prioritise stability and balance.
“These proposals would achieve the absolute opposite,” she said, adding that a balanced framework would allow the sector to remain competitive and continue supporting sports and public funding.
“Britain’s betting and gaming sector is a world leader – employing thousands, paying billions in tax, and investing in British sport. The choice is clear: back a successful, sustainable, regulated British industry – or risk losing jobs, investment and growth.”
Retail operators voice similar fears
Major operators have echoed the BGC’s concerns.
A Sunday Times report suggested that William Hill could close between 120 and 200 retail shops if tax rises go ahead. Flutter Entertainment has also announced plans to shut 57 Paddy Power outlets in total across the UK and Ireland, citing rising costs and economic pressure.
Entain CEO Stella David hinted that further closures may follow as companies look to cut expenses and offset higher tax burdens.
Industry braces for November decision
As the UK Treasury finalises its plans, industry groups argue that higher taxes would only strengthen the illegal gambling market, eroding the progress made in consumer protection and responsible play.
The coming budget will determine whether the government chooses growth through regulation, or revenue through risk.
Will the UK’s next tax move secure sustainable reform, or push its gambling sector into retreat?
Source: iGB
