Can Britain Protect Its Betting Heritage Amid Rising Tax Pressures?

The gambling industry plays an important role in the British economy, contributing around £6.8 billion each year and paying £3.6 billion in tax alone. In 2023 there were over 2,300 licensed gambling operators in the UK.

However, the Government is proposing a change in the way that the sector is taxed, suggesting a streamlined process that would tax all gaming duty at 21%.

This could potentially have grave consequences for the sport of horse racing, where all bets are currently taxed at 15%, a move which could potentially cost the sport an estimated £330 million over the next five years.

Such changes also run the risk of pushing more players to the black market and unregulated betting sites, where an estimated 1.5 million Britons already wager £4.3 billion annually.

A key part of the research highlighted public concern around the changes, with nearly one third of respondents (31%) saying they felt that the Government has too much influence on how people spend their money.

In response to the research, the CEO of the BGC Grainne Hurst said: “Punters are clear, betting is not just a leisure activity, but a valued and long-standing part of Britain’s cultural and sporting landscape.

“However, these significant cultural and economic contributions are now at risk. Any further increase in taxation on regulated betting and gaming operators will hurt punters and drive even more towards the illegal, online black market, which pays no tax, supports no jobs, contributes nothing to British sport, and offers no safer gambling protections.

“We want to work with racing and the Government constructively to get the balance right and prevent further tax rises, which will only undermine racing’s revenues and threaten investment in the sport, already a more expensive and less profitable product for operators.

“Only balanced regulations and a stable tax regime can safeguard consumers, secure jobs, and ensure betting and gaming continues to be a responsible, growing sector, and a proud part of Britain’s cultural heritage.”

It will be interesting to see how the Government responds to this pressure, with horse racing set to go on strike on 10th September, postponing scheduled meetings at Carlisle, Uttoxeter, Lingfield Park and Kempton Park.

The UK gambling industry currently supports 109,000 jobs, something which could be put at risk should more people be pushed to playing at unlicensed sites.