BGC Warns Autumn Budget Tax Rises Will Hit Jobs and Boost Black Market
Published on by Zena Grantham
The Betting and Gaming Council (BGC) has issued a stark warning following the Chancellor’s Autumn Budget, arguing that the announced tax measures will lead to substantial job losses, weakened consumer protections, and significant growth in unlicensed gambling activity.
While the Government presented elements of the Budget as supportive of horse racing, the BGC said the sector had not been shielded in any meaningful way. According to the Council, racing’s apparent exemption from higher duties “is cosmetic” and does nothing to offset the wider pressures created by large-scale tax rises elsewhere in the industry.
Major tax increases across online gaming and sports betting
Under the Budget, Online Gaming Duty will rise from 21% to 40% in 2026 – a 90% increase. Sports Betting Duty will move from 15% to 25% the following year. Treasury projections suggest the changes will deliver an additional £1.1 billion in annual tax revenue by 2029.
The BGC argues that the Autumn Budget gambling tax is one of the most significant tax escalations imposed on any modern UK sector, warning that it will fundamentally alter the market and reduce the competitiveness of licensed operators.
Risk of customer migration to unregulated sites
The Council said the measures will not improve consumer safety and may instead drive customers towards unlicensed operators that do not comply with UK safeguards. The BGC pointed to official NHS data showing gambling harm at 0.4%, cautioning that further pressure on the regulated market could undermine progress.
Treasury documents accompanying the Budget estimate an expected rise of £500 million in unlicensed gambling activity. The Government has allocated £26 million to enforcement – a figure the BGC described as insufficient for the scale of the projected shift.
Independent analysis forecasts significant job losses
EY modelling suggests the Remote Gaming Duty increase alone could put nearly 15,000 highly skilled roles at risk and redirect over £4 billion in stakes to offshore operators. Higher Sports Betting Duty could divert a further £2 billion offshore and endanger an additional 1,750 jobs. In total, almost 17,000 roles may be affected, predominantly in regions where tech investment is already fragile.
International comparisons highlight similar trends. The UK’s online gaming tax rate will become the highest in Europe once the changes take effect. When the Netherlands increased its slot tax to 34.2%, regulated revenue fell, and black-market participation exceeded 50%.
Racing is facing indirect consequences
Although racing avoided a direct duty increase, the BGC said the impact on the sport will still be considerable. Betting companies contribute to racing through levy payments, sponsorships and media rights, and any contraction in the regulated industry is expected to reduce those funding streams.
The Council noted that around 500 betting shop closures could remove roughly £20 million from racing. “Racing cannot thrive if betting is pushed into decline,” the statement said.
Regulatory changes already reshaping the market
The sector is already undergoing extensive reform under the Gambling White Paper. These include new financial risk checks, expanded safer gambling requirements, tighter age-targeting rules, and recently implemented online slot stake limits of £2 for those aged 18–24 and £5 for customers aged 25 and over.
More than forty reforms are already in effect, and the introduction of a £120 million statutory levy remains unresolved, with charities still unclear on how funding will be accessed.
Industry calls for policy shift
The BGC said the Budget creates a situation in which only the black market benefits. However, customers, regulated operators, employees and dependent sectors, including racing, face increased pressures.
In a concluding statement, BGC Chief Executive Grainne Hurst said the organisation remains committed to working with the Government to maintain a secure, sustainable gambling framework but warned that the Budget “moves in the opposite direction.”