BGC responds to proposed tax rise: ‘Simply not credible; would completely derail horseracing’
BGC CEO Grainne Hurst has underlined the impact any further tax rises could have on the UK gambling industry.
Key points:
– Proposals have been made over tax rises on the gambling industry which could reach £3bn ($3.92bn)
– News comes ahead of the UK Government’s budget later this month
– The BGC has highlighted the potential impact on the industry and rise of the black market as a result
The Betting and Gaming Council (BGC) has offered its response to reports suggesting that proposals are on the table of a tax raid of up to £3bn ($3.92bn) on the gambling sector.
A report in the Guardian explained how two thinktanks had put forward proposals to raise extra funds through higher taxes on the gambling industry, something that had been backed by one of Labour’s donors.
It has been suggested to Gambling Insider that only those claiming the Treasury is receptive to the proposals, are the ones calling for it.
The BGC responded to Gambling Insider regarding this story, emphasising the contribution of its members, which it has said is £7.1bn to the economy and £4.2bn in taxes, while supporting 110,000 jobs.
In the statement sent to us, BGC CEO Grainne Hurst said: “The current speculation around taxes is being driven by anti-gambling campaigners, based on fantasy economics and are simply not credible.
“I want to be very clear with Government, any further tax rises now will not only slam the breaks on growth for our sector, but it will threaten jobs and completely derail horseracing.
“Our industry is at a crossroads as we seek to implement the measures contained in the White Paper, measures that will cost our sector over £1bn. We also can’t ignore the new Levy on Research, Prevention and Treatment for problem gambling, which will raise £100m a year from bookmakers.
“After so many years of uncertainty, we need stability to deliver sustainable investment, not further change which threatens to undo that contribution. What is true for the BGC is also true for horseracing.
Good to know: Gambling stocks including that of Evoke, The Rank Group, Flutter Entertainment and Entain took a big hit Monday morning in the wake of the tax rise reports
“Any new taxes now risk giving a leg-up to the lurking menace of the black market, which is hoovering up disaffected customers with eye catching offers but none of the protections that are in place in the regulated market.”
The reports are of particular note as the Labour Party was expected to be more gambling-friendly than the previous Conservative Government, as many growing up in labour areas had affinity with greyhound and horserace betting.
The Conservative Party, by contrast, was seen as ambivalent towards the industry. These reported tax proposals would go against that line of thinking.
Hurst continued: “Customers have been hit hard for years, with increasing pressure on the cash people have available to spend on the hobbies they enjoy, once bills and taxes are paid. Now is not the time to ramp up that pressure.
“Betting and gaming remains a hugely popular pastime in this country, with around 22.5 ,million people having a flutter each month, and it is enjoyed safely by the overwhelming majority. Our members are a Great British export and genuine global leaders, delivering enormous economic good in city centres, on high streets and in the growing online sector.
“We want to partner with Government to see the right, proportionate regulations and a stable tax regime, which doesn’t hit customers, doesn’t raise the attraction of illegal operators and doesn’t derail the horseracing industry, but instead delivers on the Government’s growth agenda.”
This news follows Poppy Gustafsson being appointed the UK Investment Minister last week, with the BGC offering its congratulations to Gustafsson.
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