Betting Industry Warns Reeves Against Punitive Tax Hikes

_{Casinos.com reports on growing concern that higher gambling taxes could drive players to the black market and cost the UK jobs and revenue. (Image: BGC/Daily Star)}

The UK’s betting and gaming industry has issued a stark warning to Chancellor Rachel Reeves as she prepares her first major economic decisions. Industry leaders say further gambling tax hikes would harm growth, cost jobs, and push punters toward unregulated operators.

Grainne Hurst, CEO of the Betting and Gaming Council (BGC), said: 

“Punishing punters and piling on new taxes won’t grow the economy, it risks jobs, drives consumers to the black market, and threatens vital funding for sport.”

Industry’s Economic Footprint

More than 22.5 million people in Britain place a bet each month, according to the BGC. The regulated sector supports an estimated £6.8 billion contribution to the economy, generates £4 billion in taxes, and sustains 109,000 jobs across the UK, many in towns and cities outside London.

Casinos, bookmakers, bingo halls, and online casino platforms also fund British sports. Horse racing receives about £350 million annually from betting, the English Football League and its clubs receive £40 million, and snooker, darts, and rugby league collectively benefit from more than £12.5 million.

Writing on the BGC Blog, Hurst argued that taxing the industry further risks undermining this support. 

“Betting and gaming isn’t a pastime enjoyed by the select few, it’s the nation’s hobby,” she said.

Black Market Risks

Industry leaders caution that higher taxes could reduce the appeal of regulated operators and drive players to the black market. Research cited by the BGC suggests that 1.5 million Britons wager up to £4.3 billion each year with illegal operators. These companies do not contribute to the UK economy, pay no tax, and often lack consumer protections.

The Netherlands provides a recent example. In January 2024, the government raised its online gambling tax rate to 34.2%. This led to a 25% fall in gross gaming revenue and a tax shortfall of €200 million within months, according to Dutch parliamentary reports.

Wider Political Context

Reeves, appointed Chancellor in July 2024, faces the challenge of stabilising the UK’s sluggish economy while funding Labour’s domestic agenda. Pressure from anti-gambling campaigners and some Labour politicians has intensified calls for a tougher tax regime on betting.

But the industry insists it has already absorbed significant regulatory costs following the 2023 Gambling White Paper, which overhauled rules around player protections and affordability checks. The BGC estimates the changes have cost its members more than £1 billion in lost revenue.

Additional government measures, including higher employer National Insurance contributions, business rates increases, and rising wage costs, have added to pressures.

Hurst said the industry wants to work with Reeves, but warned: 

“We need balanced regulations and a stable tax regime to do that, not more uncertainty.”

An Industry in Jeapordy

The debate over gambling taxes cuts to the heart of Labour’s growth agenda. While campaigners frame higher taxes as a tool for funding public services and curbing gambling harms, the industry argues it would weaken a major economic contributor, jeopardise sports funding, and fuel illegal betting.

For millions of punters, the outcome could determine whether their weekly bet stays on the high street and online with licensed operators, or moves underground.