Key points:
- The UK Government is consulting on merging three existing gambling taxes into one simplified system
- The Betting and Gaming Council (BGC) outlines the changes that could impact racing and the correlations to the black market
The Betting and Gaming Council has responded to the Government's new consultation on gambling tax reform, stating that the proposed changes could have financial consequences.
The consultation, “The Tax Treatment of Remote Gambling,” proposes replacing General Betting Duty, Pool Betting Duty and Remote Gaming Duty with a single tax (the Remote Betting and Gaming Duty).
Currently, different types of online gambling are taxed at different rates. The Government proposes that one tax would simplify the system, reduce admin for businesses and HMRC and better reflect how gambling has changed with technology.
There are also concerns the proposed system would increase costs for customers and drive them to unregulated gambling websites, which do not pay UK tax or offer safer gambling protections.
Good to know: The consultation is open until 21 July 2025 and the proposed tax rate under the new system has not yet been confirmed
Grainne Hurst, BGC CEO, stated: “Raising taxes further now on regulated betting and gaming through a new single tax would be utterly self-defeating for the Government.
“Any potential further increase in taxes on our members, so soon after a White Paper which cost the sector over a billion pounds in lost revenue, will not raise more money for the Treasury.
“If General Betting Duty is raised to the same level as Remote Gaming Duty under one new tax, it would be catastrophic for Racing’s fragile finances.
This isn't the first time the BGC has raised concerns about regulatory pressures and the growing threat of the black market. At recent DCMS and GAMLG events, the BGC highlighted the need for collaboration to protect the regulated sector and combat illegal operators.
