Gambling Industry Warns of Job Losses if Taxes Rise

_{Industry leaders have warned of business closures. (Image: Alan Evans/Casinos.com)} 

Betting firms say higher duties could shutter shops and push players to the black market.

The U.K.’s betting industry has warned that tens of thousands of jobs could disappear if the government raises gambling taxes in the next Budget. The Treasury is said to be considering higher levies on betting and gaming to boost revenue, but operators argue it would backfire, closing shops and driving players to illegal online markets.

JenningsBet, which runs around 200 shops across Britain and employs about 1,000 people, says increased taxes could be fatal for high street bookmakers.

Managing Director Greg Knight said: 

“This is not a question of a boy crying wolf. Every single betting shop would close should the government tax at some of the rates that have been suggested. No high street business can afford to absorb that.”

Tax Hikes Under Review

Currently, gambling taxes vary by activity: 21% for online gaming, 20% for physical slot machines, and 15% for sports betting. Former Prime Minister Gordon Brown has called for those rates to be raised significantly, claiming the move could generate an extra £3 billion annually for public spending.

However, analysis by professional services firm EY for the Betting and Gaming Council (BGC) disputes that figure. Their report suggests the increase would raise just £500 million while cutting up to 40,000 jobs. EY argues higher taxes would shrink player spending and push gamblers toward unlicensed, offshore operators offering better odds and fewer restrictions.

The BGC says the government risks collecting less tax, not more, while undermining regulated firms that already contribute billions to the economy and community sports.

Rise of Unregulated Markets

As more gambling shifts online, experts warn that unregulated websites are gaining ground. Freelance journalist Alex Wood, hired by the betting industry to investigate these operators, described what he found.

“There are no checks and few limits,” he said. “I found quite a few sites, black market platforms where you can bet up to £2,000 a spin, and if there’s a spin every 10 seconds, you could lose your house in a matter of minutes.”

These sites operate outside U.K. Gambling Commission oversight, often failing to provide protections against fraud, addiction, or underage play.

Critics Say Industry Overreacting

Supporters of higher taxes accuse the industry of exaggerating the threat. Rachael Henry from the Institute for Public Policy Research (IPPR), which backs Brown’s proposal, said: 

“It is no surprise that the well-funded, well-oiled gambling industry lobbying machine has come out against this. Turkeys don’t vote for Christmas.”

MPs are expected to debate the proposed changes in the coming weeks. With the Budget now four weeks away, both sides agree on one thing: the stakes are high.