The Betting and Gaming Council (BGC) has issued a fresh warning over the consequences of what it says was a “short-sighted” and “dangerous” decision by the Treasury to hike taxes on online operators.
In a post on the BGC’s website, CEO Grainne Hurst said duty increases “reflect a growing tendency by this government to tax fun” while ignoring the growing evidence that players will increasing be driven into the arms of the black market.
She also urged the government to rethink its decision “before lasting damage is done” to the “one of the UK’s few globally successful sectors”.
In the Autumn Budget, delivered at the end of November, it was announced that from 1 April 2026 remote gaming duty will nearly double from 21% to 40%. Remote betting duty (excluding horseracing) will rise from 15% to 25% 12 months later.
The news left the UK-licensed industry reeling, with leading publicly listed operators issuing statements slamming the decision and laying out how they plan to mitigate the impact.
In her post, published on Monday (19 January), Hurst said ministers faced stark choices. “They can double down on a Treasury-led approach that prioritises short-term revenue while fuelling the growth of the black market.
“Or they can recognise that safer gambling, consumer protection and tax receipts all depend on a competitive, regulated sector.
“Evidence, not ideology, should drive policy and the evidence is already overwhelming. At the crossroads, the government has already headed down the wrong road.”
Hurst continued: “The question is whether it is prepared to turn back before lasting damage is done or will they simply allow the black market to dictate the future of betting and gaming in the UK, which will only result in harm for the consumer, the Exchequer, jobs, sports and business.”
The BGC highlighted the UK gambling industry contributes £6.8bn to the UK economy a year, supports 109,000 jobs and pays £4bn in tax annually.
The trade body also said analysis it commissioned consultancy Frontier Economics to carry out showed up to 1.5 million people in Britain are already gambling on illegal sites, staking up to £4.3bn a year.
Earlier this month, EGR spoke to a range of industry stakeholders for their views on how tax increases will impact their respective businesses and the wider industry.
While most were pessimistic about the prospects for the market and expect significant job losses and exits, Justin Park, the co-founder and CEO of Betty, remains bullish about plans for his Ontario-licensed online casino to enter the UK.
Writing on LinkedIn at the weekend, he said while 40% was a “massive shift”, it creates a “unique opening for the next generation of operators”.
“If Betty UK can crack the code, they really have a shot at taking over the market as everyone else retreats,” he suggested.
The post Budget has put UK’s betting industry “on the brink”, warns trade body first appeared on EGR Intel.
Betting and Gaming Council calls for U-turn on tax hikes and reiterates dire outlook for a sector it says contributes £6.8bn to the economy and supports 109,000 jobs
The post Budget has put UK’s betting industry “on the brink”, warns trade body first appeared on EGR Intel.