BGC warns Treasury Select Committee: tax hikes risk jobs, growth, and safer gambling - statement

CEO of the Betting and Gaming Council, Grainne Hurst said: “Each month, 22.5 million people in the UK enjoy a bet - whether on the lottery, sports, online, or in bookmakers, casinos, and bingo halls. The latest NHS Health Survey for England shows that just 0.4% of adults are problem gamblers. This underlines the importance of ensuring betting and gaming policy, including taxation, remains proportionate and evidence-based.

“Further tax increases on the regulated online sector risk undermining consumer protections by pushing players towards the unsafe, unregulated black market - while reducing Treasury revenues and cutting the vital funding our members provide to British sport, including horseracing, football, rugby league, darts, and snooker.

“Independent analysis by EY shows such proposals could put over 40,000 jobs at risk, divert £8.4 billion in stakes to the black market, and wipe £3.1 billion from the sector’s contribution to the UK economy.

“Any increase in Machine Games Duty would be devastating for land-based operators like casinos and betting shops. These are already highly taxed, highly regulated businesses that provide thousands of good jobs on high streets and in hospitality venues across the UK.

“Further tax rises would threaten their very survival, leading to shop and casino closures, job losses, and reduced investment in local communities. The Government must think very carefully before taking decisions that could undermine Britain’s much-loved leisure and entertainment sector and drive customers towards the unsafe, unregulated black market.

“We have always recognised that betting and gaming can lead to harm for a small minority, which is why our members are investing more than ever in safer gambling - including new stake limits on online gaming, enhanced affordability checks, swift data-driven interventions, robust advertising safeguards, and funding for a new £100 million statutory levy for research, prevention, and treatment to tackle problem gambling and related harm.

“It’s also important to remember that all online betting and gaming in Britain is already taxed on a ‘point of consumption’ basis. Meaning duty is paid on every bet placed by a UK customer, regardless of where the operator is based. This ensures the Exchequer receives its fair share and that British consumers are protected under UK regulation.

“BGC members contribute £6.8 billion to the economy, generate £4 billion in tax, and support 109,000 jobs, while facing an effective tax rate of up to 80% when duties are combined with corporation tax, business rates, national insurance, VAT, and the new statutory and economic crime levies.

“Much is at stake in the Chancellor’s Budget. Get it wrong, and it’s not just jobs and growth that will suffer, it’s safer gambling itself. To protect consumers and support a safer, stronger industry, we must keep gamblers playing within the regulated market.”