BGC criticizes proposed gambling tax hike in the UK

Over the weekend, a rumor broke out that the Labor Party government in the United Kingdom would seek to plug a budget deficit hole by levying the gambling industry with a double-digit tax increase.

The rumors spread quickly, and according to The Guardian’s sources, which did the original reporting, there is little pushback on a government level, meaning that the tax increase could as well happen.

BGC highlights the risks of further tax increases on gambling

In responding to those rumors, which seek to raise £3bn in extra cash for the Treasury, BGC CEO Grainne Hurst spoke exclusively to Next.io, a respected industry publication, arguing that the "tax speculation" was stoked by "anti-gambling campaigners."

The Guardian as a publication has been highly critical of the gambling industry and has refused to publish promotional gambling materials or advertisements on its digital or print pages as an official editorial policy as of 2023.

Historically, the publication has offered critical coverage of the industry in the United Kingdom. However, it’s not the publication that has pitched the idea to have the general betting duty bumped to 30% from 15% presently, or the remote gamin duty more than doubled to 50% from its current 21%.

Hurst offered a sobering insight into what such a decision would mean for the industry. For one, it would "derail" horse racing, but it would also end up impacting the sector as a whole and cut employment rates. Presently, the gambling industry employs 110,000 people.

Hurst argued that any regulatory changes must be balanced and that a "proportionate tax regime" would guarantee that the black market, which has been continuing to expand, would be kept at bay with consumers channelled into safe gambling environments instead.

BGC’s boss has expressed clear concerns about the impact that slapping the extra tax would have on the regulated market and its ability to stay competitive in the face of mounting challenges from black market operators which are not subject to the same rigorous standards, nor are they obligated to pay tax or follow responsible gambling standards.

Regulatory regimes in a state of flux across Europe

Hurst has urged for "stability to deliver sustainable investment" and avoid a path that would lead to more changes that would threaten the industry’s contributions. Meanwhile in the Netherlands, a pair of MPs has suggested to have much of the regulation about online gambling overturned.

In Sweden, the local trade group, BOS, has issued a similar caution to the government about playing fast-and-loose with the tax regime on the industry, arguing that levying higher duties on companies in the sector inadvertently ends up fueling black market operations and giving the black market a leg-up in the country at the expense of consumers.

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