Even the horse racing tax exemption is ‘cosmetic’
The British government’s own forecasts show its new betting and gaming tax regime will fail to raise the revenues promised, while driving more customers towards harmful illegal gambling, the Betting and Gaming Council has warned.
In another sign that the Chancellor’s Budget is unravelling, the Office for Budget Responsibility has admitted that the tax plans will reduce projected yield by around one-third, including £500m lost by 2029-30 as consumers switch away from the regulated sector to 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.
Despite these warnings, the Government continues to claim the measures will raise £1.1 billion, a figure that industry experts, independent analysts including EY, and the BGC believe will not be achieved.
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 £6 billion 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 taxation revenues. They also push more customers to the black market, where there are no protections, no taxes and no safeguards.”
The regulated betting and gaming sector currently contributes £6.8 billion to the UK economy, supports over 109,000 jobs, and provides £4 billion in taxes, including vital funding for racing, sport and tourism. But further tax rises threaten to weaken one of the UK’s most internationally competitive digital industries at a time when the illegal market is expanding rapidly.
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.
The Chancellor’s Autumn Budget has been pitched as good news for horse racing, but in reality, the Betting and Gaming Council says it spells thousands of job losses right across the entire betting and gaming industry and represents a major setback not only for that sector but for all the sports our industry supports.
Ms Hurst said: “Racing has seemingly been protected from higher betting duties. It sounds like a win, but anyone who understands how the sector operates knows that isn’t true. This exemption is cosmetic. Beneath the surface, this Budget delivers a devastating blow to the very ecosystem that racing relies on.
“What the Chancellor has actually done is impose one of the largest tax hikes on any industry in modern times. Online gaming duty will soar from 21 per cent to 40 per cent in 2026 – a 90 per cent increase. Sports betting duty will rise from 15 per cent to 25 per cent the following year, up nearly 67 per cent. The Treasury expects £1.1 billion a year in additional tax by 2029. These are not harmless revenue raisers; they will fundamentally reshape the market, and not for the better.”
The Remote Gaming Duty rise alone could cost almost 15,000 high-tech jobs and displace over £4bn in stakes to unlicensed operators. Higher sports betting duty risks another £2bn moving offshore and a further 1,750 job losses. In total, nearly 17,000 jobs are at risk – many in regions that need investment most. More than £6 billion in stakes could be driven to the black market.
“These are not theoretical risks; they reflect the realities of a digital market where consumers can switch provider instantly, Ms Hurst warns. “International evidence reinforces this. Once the rises take effect, the UK will have the highest online gaming taxes in Europe. In the Netherlands, when slot taxes rose to 34.2 per cent, revenue fell, tax receipts dropped, and black-market play surged to more than 50 per cent. Pricing the regulated sector out of competitiveness doesn’t reduce gambling – it pushes it into the shadows.”
“Against this backdrop, the idea that racing has won anything is dangerously misleading. Racing may have avoided a direct betting duty rise, but it will still feel the consequences. Betting operators fund sponsorships, media rights and the levy; when the regulated sector contracts, that funding contracts with it. An estimated 500 betting shop closures could cost racing around £20m. Racing cannot thrive if betting is pushed into decline.”
“The only winner from this Budget is the black market – they’ve hit the jackpot. The losers are customers who will now be exposed to greater risk, communities that rely on jobs and investment, and sectors like racing that depend on a strong regulated industry.”
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Even the horse racing tax exemption is ‘cosmetic’ The British government’s own forecasts show its new betting and gaming tax regime will fail to raise the revenues promised, while driving more customers towards harmful illegal gambling, the Betting and Gaming Council has warned. In another sign that the Chancellor’s Budget is unravelling, the Office for…
The post Betting and Gaming Council says black market will double in size due to new tax levels appeared first on G3 Newswire.