A new survey conducted by YouGov for the Betting and Gaming Council (BGC) has revealed that 65% of regular UK bettors believe a proposed online betting tax hike would push customers toward unregulated gambling sites. The findings arrive amid an ongoing UK Treasury consultation that could reshape how betting is taxed across the country.
Launched in May and running through 21 July, the government’s consultation proposes replacing three existing levies—Remote Gaming Duty (21% of profit), General Betting Duty (15%), and Pool Betting Duty (15% of net stakes)—with a single, consolidated Betting and Gaming Duty (BGD). While the final rate has yet to be determined, industry leaders fear the new duty may mirror the higher 21% currently applied to remote gaming.
Operators and Industry Experts Voice Concerns
Legal and industry experts are warning of the potential fallout. Melanie Ellis, partner at Northridge Law, cautioned that smaller operators, in particular, may not be able to cope with increased tax burdens. “Particularly, smaller and newer brands who are trying to grow their market share” would feel the pressure, she said.
According to Ellis, tightening margins could force bookmakers to offer less favourable odds or even trigger market contraction, leaving only the biggest operators able to survive. “This in itself is likely to drive customers to the black market,” she warned, noting that the most vulnerable players could be disproportionately affected.
BGC Warns of ‘Self-Defeating’ Impact on Regulated Market
Grainne Hurst, CEO of the BGC, described the YouGov findings as a stark warning. “This shocking statistic proves what’s at stake if the Government forces through a self-defeating tax hike on ordinary punters,” she said. Hurst emphasized that such a move “will not raise more tax” but instead risks driving consumers out of the regulated environment and into “the growing, illegal, unregulated and unsafe gambling black market online.”
The BGC has repeatedly cautioned against the ripple effects of higher taxation, particularly its potential to destabilize industries like horse racing. According to the Council, its members contribute £350 million annually to horse racing through the Levy, sponsorships, and media rights. They also support over 109,000 jobs, generate £6.8 billion for the UK economy, and raise £4 billion in taxes.
The group’s internal research indicates that as many as 1.5 million UK bettors now wager up to £4.3 billion per year on illegal platforms. These unlicensed operators do not contribute to UK sports, pay no taxes, and often target self-excluded or at-risk individuals.
Government Urged to Rethink Strategy
With Labour having returned to power following a landslide 2024 election, the government’s new direction on tax and growth is under scrutiny. Hurst said the proposed tax policy “makes a mockery” of any serious growth strategy and warned it could trigger a “spiral of decline” for sports like racing.
“This is a wake-up call for government,” Hurst stressed. “Punters have been loud and clear: Hit them with further taxes and they will walk away from sports like racing, straight to the black market.”
As the consultation period continues, operators and stakeholders are pushing for a balanced approach that safeguards consumer protection while preserving the viability of the licensed betting industry.
Source:
Two thirds of punters fear tax hikes would force customers to the illegal gambling black market, shock study finds, bettingandgamingcouncil.com, June 9, 2025
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