BGC presses for UK gambling tax U-turn as figures cast doubt on government forecasts
The Betting and Gaming Council says official forecasts show the tax rise is unlikely to raise the revenue claimed.
UK.- The fight to prevent a gambling tax rise in the UK may have been lost, but the Betting and Gaming Council (BGC) continues to sound the alarm over the potential impact. The industry lobby group has warned that the government’s own forecasts show the new tax regime will fail to raise the revenues promised, while driving more customers towards harmful illegal gambling.
The government has argued that the gambling tax rise, including a rise in Remote Gaming Duty for online casino gaming from 21 to 40 per cent from April 2026, will raise £1.1bn to help reduce child poverty. However, the BGC says even official figures cast doubt on that.
It cites data from the Office for Budget Responsibility (OBR) revealing that the changes could reduce projected yield by around one-third. Forecasts project loss of £500m for 2029-30 amid an assumption that consumers will switch away from the regulated sector and towards the black market.
The OBR also states that around 90 per cent of the duty increases will be passed on to consumers through higher prices or reduced payouts, making regulated products less attractive. It warns this will distort the market and drive more customers towards the illegal black market, where there are no protections, no tax contributions and no safer gambling checks.
The BGC is now calling on HM Treasury to engage with industry to reassess the tax changes before they deliver long-term damage to a thriving British sector and true success story.
Grainne Hurst, chief executive of the Betting and Gaming Council, said: “The Government’s own figures show these tax plans will cause significant damage. Industry analysis based on modelling from EY finds that nearly 17,000 high-tech jobs will be lost across online betting and gaming, with over £6bn in stakes diverted to the black market – a 140 per cent increase in its size.
“These proposals also threaten shop closures, further job losses and a less competitive online market, meaning lower, not higher, long-term tax revenues. They also push more customers to the black market, where there are no protections, no taxes and no safeguards.”
