A new EY report warns that proposed tax increases on Britain’s betting and gaming industry could deal a major blow to the economy — putting over 40,000 jobs at risk and cutting £3.1 billion from the sector’s GDP contribution.
Commissioned by the Betting and Gaming Council (BGC), the study found that tax plans by SMF and IPPR would push £8.4 billion in stakes into the illegal black market while raising only a fraction of the predicted revenue.
The BGC says its members currently add £6.8 billion to the UK economy, pay £4 billion in taxes, and support more than 109,000 jobs nationwide, including high-skilled roles in Manchester, Leeds, Stoke-on-Trent, and Warrington.
BGC Chief Executive Grainne Hurst warned: “It is now clear these further tax rises are a direct threat to British jobs and economic growth. The figures speak for themselves – tens of thousands of jobs lost, billions diverted to the black market, and a possible £3 billion hit to the economy.”
She added that such “tax raids” would mean fewer betting shops, casinos, and bingo halls, and a surge in unregulated gambling.
Think Tanks’ Plans Could Backfire
Currently, operators pay tax on Gross Gambling Yield — the difference between wagers and winnings — at 21% for online gaming, 15% for sports betting, and 20% for machine gaming.
Both SMF and IPPR proposed steep hikes, with rates as high as 50% for online gaming and 25% for sports betting. EY’s analysis shows these policies would cause widespread economic harm.
Under the IPPR plan, 40,000 jobs would be lost and £3.1 billion in output erased. The SMF model projects 30,200 job losses and £2.5 billion in lost value. In both cases, billions in stakes would shift to the black market.
While the IPPR forecasted £3.2 billion in new revenue, EY estimates the actual return at around £1 billion, and possibly under £500 million once lost taxes and employment are considered.
Analysts warn the short-term gain would quickly fade as consumers abandon regulated sites for better odds elsewhere.
Wider Industry Concerns
The new findings come amid a Treasury consultation exploring a single tax rate across all online gambling products — a move that has already raised alarm within the sector.
Earlier this year, the BGC warned such measures could harm British horseracing, which depends heavily on betting revenues. Levy contributions from BGC members hit a record £108 million in 2024–25, despite an 8% fall in turnover.
Hurst emphasized the need for stability: “Balanced regulations and a stable tax regime guarantee a growing regulated sector. But these proposals would achieve the absolute opposite of that and undermine the very consumer protections that keep people safe by pushing customers towards the unregulated black market.”
Major operators share those concerns. Betfred said further tax hikes could threaten its 1,300 shops and 7,000 jobs, while Entain CEO Stella David warned that higher taxes could fuel unlicensed gambling.
EY concludes that additional taxes would fail to raise expected revenue, stifle growth, and expand the black market — threatening one of the UK’s most competitive, well-regulated industries.
Source:
“Further Tax Raid On Betting Threatens 40,000 Jobs And £3BN Blow To UK Economy, Warns New Analysis”, bettingandgamingcouncil.com. October 26, 2025
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