UK Betting Council Warns New Gambling Tax Could Cost 40,000 Jobs and £3 Billion

The Betting and Gaming Council (BGC) is warning that raising gambling taxes could wipe billions from the UK economy and put tens of thousands of jobs at risk.

Good to Know

• EY-Parthenon estimates up to £3.1 billion in losses to the UK economy.
• As many as 40,000 industry jobs could disappear under proposed tax hikes.
• The new tax plan is expected to be outlined during the November 26 budget.

The findings come from an EY-Parthenon report commissioned by the BGC, titled Impacts of Changes to Betting and Gaming Regulation. The study assessed four tax proposals targeting the UK’s three main gambling duties: general betting duty (GBD) at 15%, remote gambling duty (RGD) at 21%, and machines gaming duty (MGD) at 20%.

Potential Job and Revenue Losses

EY-Parthenon modeled how various rate adjustments could impact tax revenue, industry growth, and black-market gambling. Aligning tax rates at 21% for betting, 21% for remote gaming, and 20% for machines could initially raise £250 million in extra duty — but also increase black-market activity by £400 million, offsetting the benefit and costing up to 2,800 jobs.

Under more extreme elasticity assumptions, the black market could grow by £1.2 billion, cutting the sector’s value by £420 million and eliminating nearly 5,000 jobs.

The Social Market Foundation’s (SMF) proposal — to raise RGD to 50% and GBD to 25% — could strip £2.2 billion in gross value added (GVA) and cost 22,000 jobs, according to the report. A stronger market reaction could see £8.1 billion shift to unregulated operators, wiping out 30,000 jobs.

The IPPR Scenario and Industry Pushback

The harshest scenario came from the Institute for Public Policy Research (IPPR), which suggested raising all three duties to 50%. EY estimates that could trigger £3.1 billion in GVA losses and destroy 40,000 jobs.

Even a smaller 5% across-the-board increase would still hurt the regulated sector, leading to nearly 10,000 job cuts and reduced GVA across betting, online, and machine gaming markets.

BGC CEO Grainne Hurst described the findings as a wake-up call for policymakers. “Figures speak for themselves,” she said. “Tens of thousands of jobs lost, billions diverted to the black market and a possible £3 billion hit to the economy.”

Hurst urged the government to adopt a balanced tax regime that supports responsible gaming rather than driving players toward unregulated operators.

FAQ

Who commissioned the report?

The Betting and Gaming Council commissioned EY-Parthenon to assess the potential impact of new tax measures.

What is the biggest concern for the industry?

That higher gambling taxes will fuel unlicensed activity and lead to job losses across betting shops, casinos, and online platforms.

When will new tax decisions be announced?

The government is expected to reveal details in the November 26 budget.

What does the BGC want?

A stable, balanced tax framework that supports a regulated, responsible gambling industry without driving users to the black market.

The post UK Betting Council Warns New Gambling Tax Could Cost 40,000 Jobs and £3 Billion appeared first on iGaming.org.