The Betting and Gaming Council (BGC) has raised serious concerns before the UK Treasury Select Committee, warning that proposed tax increases on gambling could lead to tens of thousands of job losses and a sharp rise in illegal betting activity.
During the session, BGC Chief Executive Grainne Hurst highlighted that the regulated sector already faces a growing threat from unlicensed operators, with 1.5 million British consumers reportedly using black market websites. Hurst argued that additional tax pressures would worsen this situation by reducing the competitiveness of licensed operators and undermining responsible gambling safeguards.
According to the BGC’s tax committee chair Stephen Hodgson, the industry’s effective tax rate exceeds 65%, including corporate tax, business rates, National Insurance, and excise duties. Hodgson pointed to the experience in Ireland, where a similar tax increase in 2019 led to the closure of more than 120 betting shops, warning that the UK could face comparable consequences.
In contrast, thinktanks such as the Institute for Public Policy Research and the Social Market Foundation argued that the sector remains undertaxed relative to social harms, suggesting higher rates for online slots and casino games while maintaining lower taxes for traditional betting.
The Treasury Committee will use these testimonies to inform its recommendations ahead of the November 26 budget, where Chancellor Jeremy Hunt is expected to outline key fiscal decisions impacting the gambling industry. The outcome could reshape how the UK balances taxation, regulation, and player protection within its multibillion-pound gambling market.
