EY Warns Higher UK Gambling Taxes Could Harm the Economy

A new report by Ernst & Young (EY), commissioned by the Betting and Gaming Council (BGC), highlights the potential downsides of raising gambling taxes in the UK. The study, Impacts of changes to betting and gaming taxation, evaluates four taxation scenarios ahead of the Autumn Budget, modelling outcomes for betting, gaming, and machine duties.

EY’s findings suggest that while the government could earn up to £250 million in additional revenue annually under proposed alignment of tax rates, the overall economic cost may outweigh the fiscal benefit. The analysis indicates a possible £240 million reduction in gross value added (GVA) and job losses ranging between 2,800 and 4,700 across the sector and its supply chain.

More aggressive tax proposals, such as those put forward by policy think tanks, could result in even greater harm with up to 30,000 jobs lost and as much as £3 billion in economic value erased. The report also warns that higher tax rates could push players toward black-market operators, undermining both consumer protection and tax collection efforts.

Currently, the UK gambling industry contributes approximately £6.8 billion to the economy and supports over 100,000 full-time jobs. EY cautions that additional tax burdens, combined with existing reforms from the government’s 2023 white paper, could accelerate closures of betting shops and casinos.

The report concludes that while revenue generation is a valid goal, policymakers must balance fiscal ambition with the sustainability of regulated gambling. Excessive taxation, it warns, could backfire strengthening unregulated markets and reducing legitimate economic contribution.

For Latest News, visit: iGamingNewsToday

Follow our LinkedIn Page for Latest Post Notifications: igamingnewstoday