The UK authorities’s latest proposal to consolidate its on-line playing tax construction has sparked a backlash from key stakeholders inside the betting and racing sectors. The Betting and Gaming Council (BGC) and the British Horseracing Authority (BHA) have expressed considerations that the brand new tax regime may place vital monetary pressure on the UK’s racing business and broader playing sector.
Proposed Tax Reform Could Harm Racing Finances
On April 28, 2025, the UK Treasury launched a session titled The Tax Treatment of Remote Gambling. This session suggests changing the prevailing construction of General Betting Duty (GBD), Pool Betting Duty, and Remote Gaming Duty (RGD) with a single, unified tax fee beneath the proposed Remote Betting and Gaming Duty (RBGD). The intention is to simplify the tax system, cut back administrative burdens, and modernize the framework to mirror adjustments within the playing sector pushed by technological developments.
Currently, the UK’s playing tax system applies totally different charges to numerous playing actions. Fixed-odds betting and pool betting are taxed at 15%, whereas distant gaming, together with slots and roulette, is taxed at a better fee of 21%. The proposed reform goals to harmonize these charges beneath a single tax, which the federal government believes will streamline operations for each companies and the tax authorities.
However, stakeholders just like the BGC have raised alarms over the potential penalties for the racing business. Grainne Hurst, CEO of the BGC, strongly criticized the proposal, calling it “utterly self-defeating for the government.” She warned that aligning the General Betting Duty fee with that of Remote Gaming Duty may severely hurt the already fragile funds of British racing. Hurst argued that such a rise in taxes would probably result in companies reducing again on their UK investments or transferring operations offshore, a state of affairs that may have far-reaching results on employment and income inside the sector.
Concerns Over Impact on Jobs and Market Shifts
The BGC additional emphasised that the proposed tax reform may make UK betting merchandise dearer for customers, driving them in direction of unregulated on-line playing markets. These markets, which aren’t topic to UK taxes, typically lack the safer playing protections that the regulated sector gives. As a end result, the BGC contends that the brand new tax may inadvertently gas the expansion of the unlawful playing market, finally lowering income for the federal government.
Adding to those considerations, the BGC identified that the sector remains to be reeling from the monetary affect of the federal government’s latest playing white paper, which is estimated to have price the business over £1 billion in misplaced income. Hurst made it clear that any extra tax burden wouldn’t generate extra funds for the Treasury. Instead, it could drive progress and funding out of one of many UK’s few world enterprise success tales.
Greg Swift, director of communications on the BHA, echoed comparable considerations, emphasizing that the proposed tax adjustments may end in unintended penalties for each the racing business’s monetary stability and its workforce. While the BHA is engaged within the session course of, it stays cautious of the potential fallout from tax harmonization.
Government Consultation and Next Steps
The session interval, which started on April 28, 2025, is set to run till July 21, 2025. During this time, stakeholders are inspired to submit their suggestions on the proposed reforms. The session focuses on the technical elements of aligning the prevailing playing duties and doesn’t tackle the particular tax fee that can be utilized beneath the brand new system. The remaining fee is predicted to be decided through the upcoming finances course of.
The authorities’s acknowledged objective is to deliver readability and ease to the tax construction, aligning it with the trendy dynamics of the playing business. However, with the proposed adjustments, many within the sector worry that the elevated tax burden can have hostile results on each the betting business and the UK’s racing sector.
IWhile the UK authorities seeks to modernize its playing tax system, the session course of can be pivotal in figuring out whether or not the proposed adjustments can strike a steadiness between simplification and the monetary well-being of the regulated playing sector.
Source:
Industry warns UK’s new gambling tax could harm racing and jobs, World Casino Directory, April 29, 2025.
