A new study commissioned by the Betting and Gaming Council (BGC) has found nearly two-thirds of bettors would seek out black market operators if a tax hike on sports betting was introduced in the UK.
In the survey, conducted by YouGov on behalf of the trade body, UK bettors were asked: “Imagine that betting on sports events like horseracing became more expensive because the government increased the amount of tax that betting companies have to pay.
“How likely or unlikely do you think it is, if at all, that this would make customers turn to unregulated betting sites that don’t have to pay any tax at all?”
Of those who considered themselves regular punters, 65% said black market engagement would increase, while 23% said a tax increase wouldn’t affect their willingness to seek out black market operators.
Back in April, the government opened a consultation period with industry stakeholders to discuss the possibility of introducing a new single tax rate for online operators in the UK, dubbed the Remote Betting & Gaming Duty (RBGD).
Under the current system, general betting, pool betting and online casino are recognised as three separate verticals, each with its own tax rate.
Pool and general betting, which includes sports betting, are taxed at 15% on all gross gaming revenue (GGR), while online casino operators are subject to a 21% tax rate.
The RBGD would apply to online casino, bingo, sports and pool betting, with the consultation designed to explore how this would work in practice.
The consultation period opened on 28 April and will run until 21 July 2025, with the new tax rate earmarked for introduction by October 2027.
However, the consultation will not determine the new rate of tax, as that process will be left to the Treasury and government.
The BGC has previously warned that a single tax rate would be detrimental to Britain’s horseracing industry.
BGC CEO Grainne Hurst said the results of the YouGov survey should serve as a wake-up call for the government and that a single tax rate would “trigger a spiral of decline”.
She remarked: “This shocking statistic proves what’s at stake if the government forces through a self-defeating tax hike on ordinary punters.
“It’s clear it will not raise more tax, it simply risks forcing huge numbers of customers out of the regulated market, with its world-leading standards on player safety, into the arms of the growing, illegal, unregulated and unsafe gambling black market online.
“Any tax rises would make a mockery of the government’s growth strategy and be catastrophic for horseracing, which is already facing a bleak financial outlook.
“This is a wake up call for government, punters have been loud and clear, hit them with further taxes and they will walk away from sports like racing, straight to the black market, triggering a spiral of decline.”
A survey released by the BGC back in September 2024 estimated that 1.5 million British customers were staking up to £4.3bn on the black market every year.
The post BGC: Tax hikes would drive two thirds of UK bettors towards black market first appeared on EGR Intel.
Trade body says findings of survey carried out by YouGov are “catastrophic” for horseracing and a “wake-up call” for the UK government
The post BGC: Tax hikes would drive two thirds of UK bettors towards black market first appeared on EGR Intel.