Today marks my first anniversary as chief executive of the Betting and Gaming Council. It’s a privilege to represent an industry that contributes billions to the economy and plays such an integral role in British sport and culture. But it’s also a moment of real jeopardy for our sector, and for the sports and communities we support.
Much has been made this summer of the impact a betting tax hike could mean for horseracing. The decision by Flutter, the gambling giant owners of Paddy Power, Betfair and SkyBet, not to commit to ITV’s Champions Full Gallop – a documentary series watched by over 4m viewers – as part of “reviewing wider investment plans in racing”, is the latest warning sign.
This important decision, not taken lightly by the company, is just the tip of the iceberg and one part of a much bigger story, with the potential damage going far deeper than just one sport.
Because if Chancellor Rachel Reeves hikes duties in the Budget, the ripple effects won’t just be felt at racecourses. From football to darts and rugby league, from local betting shops to major UK employers, the reality is that any tax raid on the sector would undermine jobs, economic growth, and the support we provide to sports right across the country.
Betting in the spotlight
Betting is mission critical to horseracing, a sport that enjoys a profitable symbiotic relationship with our members. Our commitment to racing is clear in the £350m we proudly contribute each year in direct funding – including record Horserace Betting Levy contributions that have increased four years in a row. We want to see racing thrive.
But our members don’t stop there. Through sponsorship and advertising, BGC members pump millions more into other sports. Football clubs in the English Football League receive £40m annually. Snooker, darts and rugby league collectively benefit by more than £12.5m.
Each month, 22.5m adults in Britain enjoy a bet safely, making these contributions possible. When betting thrives, so do our sports – and so does our economy.
The regulated betting and gaming industry is also a driver of growth. BGC members generate £6.8bn for the economy, contribute £4bn in taxes, and support 109,000 jobs.
Thousands of these are in betting shops and casinos that sustain high streets, offering careers and investment in local communities. Thousands more are in online betting and gaming, clustered in centres of excellence in places like Leeds and Stoke.
Undermining
But piling on more taxes risks undermining all of this. The Treasury says it wants to avoid “unintended consequences” but the dangers of overtaxing are well known. Push too far, and customers drift to the growing, unsafe, unregulated black market, which pays no UK tax and provides zero protections.
The result? Less revenue for the Exchequer, fewer jobs here in the UK, and weaker safeguards for consumers.
This is not a scare tactic. Look at the Netherlands, where a tax hike led to a €200m shortfall as players shifted to unregulated sites. Hiking taxes does not automatically increase revenues; in fact, it can achieve the opposite. A study commissioned by the BGC found that 1.5m Brits already stake up to £4.3bn on the black market each year. That’s money lost to the Treasury and to sport.
A strong, well-regulated betting industry means stable tax receipts, reliable investment, and continued support for Britain’s most-loved sports. It also means operators remain onshore, creating jobs, contributing to growth, and being held to the highest standards.
Betting at stake
In difficult economic times, the temptation for a quick revenue grab is understandable. But a hike now won’t bring in more, it will jeopardise the very revenues the Treasury depends on.
Only balanced regulation and a stable tax regime can deliver the growth and tax receipts this country needs.
Chancellor Rachel Reeves faces a nightmare Budget this autumn. She has a delicate balancing act to strike to bring in more revenue.
As the Cabinet meets today, there’s only one item on the agenda, and that’s growth. Yes, the Chancellor needs to raise taxes, but not at the expense of killing growth – growth that is the key to boosting tax receipts.
And when it comes to potential further betting tax hikes, there’s far more at stake than just horseracing or other sports. Jobs, growth and investment onshore are all at risk too.
