BGC Again Warns Tax Rises Will Divert Players To Black Market
The Betting and Gaming Council (BGC) has again warned that incoming gambling tax rises will lead UK players to the black market.
The most recent warning comes after an Anacta poll also shows that two-thirds of respondents believe that betting will become less fun.
Tax changes will start to come into force from April this year.
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Gambling Tax Changes
Chancellor Rachel Reeves announced tax rate changes as part of last November’s budget.
Claiming the changes would raise £1billion a year in additional tax revenue, the government announced remote gaming duty, paid by online casinos, will increase from 21% to 40% in April 2026, while general betting duty for remote betting will be increased to 25% from April 2027.
Horse racing was spared any direct increase, but the industry is likely to suffer the knock-on effects of increased levies against betting companies.
Outlining the changes, Reeves said: “Taken together, my reforms to gambling tax will raise over £1bn per year by 2031.”
"Claiming the changes would raise £1billion a year in additional tax revenue, the government announced remote gaming duty, paid by online casinos, will increase from 21% to 40% in April 2026."
BGC Opposition
When the budget was announced, the BGC’s CEO, Grainne Hurst, said: “Massive tax increases for online betting and gaming announced in the Budget make them among the highest in the world, and are a devastating hammer blow to tens of thousands of people working in the industry across the UK, and millions of customers who enjoy a bet on licensed casino sites.”
She went on to caution: “These decisions are bad for jobs, bad for customers, bad for sports - and bad for safer gambling on trustworthy gambling sites.”
According to a poll sanctioned by the BGC and conducted by Anacta, 52% of respondents believe the changes will force players to the black market.
Furthermore, 66% said they believe it will take some of the fun out of betting. And 57% already believe the UK market is heavily regulated.
Having previously said that the increases will cause the UK black market to double in size, Hurst has reiterated her belief that higher taxes will not reduce demand but push people to unregulated casino sites.
The government’s changes have been questioned by multiple parties. Some politicians, including those from within the government’s party, have raised concerns.
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As well as the risk to players who do transition to black market sites rather than trustworthy gambling sites, there are concerns over potential job losses.
According to some estimates, as many as 17,000 jobs could be at risk.
Meanwhile, some have questioned the £1bn-a-year figure. Even the Office for Budget Responsibility has suggested the figure will likely be much lower.
They have also said £500m will be lost by 2030 as players move to unregulated sites, including offshore slot sites.
The betting and gaming industry contributes nearly £7bn a year to the UK economy and already pays £4bn in taxes.
It also employs more than 100,000 people and is widely considered one of the most advanced regulated gambling markets in the world.
Despite this, it is unlikely the Chancellor will reverse the impending changes, and the industry has already started to see the impact.
Sky Bet relocated its headquarters from the UK to Malta in anticipation of the changes, and Evoke has also confirmed it will close some of its William Hill betting shops.
