Survey Reveals UK Gambling Tax Rise Could Push Punters Toward Black Market Gambling
Published on by Zena Grantham
A proposed UK gambling tax rise is sparking concern across the industry, with new data suggesting almost a third of regular punters would turn to the black market if promotions and offers disappear. Nearly one in three regular bettors say they would consider turning to unregulated gambling sites if government tax changes force licensed operators to drop odds or promotional offers, according to a new YouGov poll commissioned by the Betting and Gaming Council (BGC).
Why the UK Gambling Tax Rise Could Push Bettors to Illegal Sites
The data reveals 28% of regular punters would be “likely to use an unregulated gambling site” if better incentives were on the table – an alarming signal as the Treasury considers overhauling online gambling taxes.
With 22.5 million adults placing bets across the UK each month, from lotteries to bingo halls and online casinos, the findings raise serious questions about the potential fallout of increased taxation on the regulated betting industry.
“Punters are clear, get the balance on tax and regulation wrong and you hand a competitive advantage to the black market where operators pay no tax, contribute nothing to British sport, and offer no safer gambling protections,”
said Grainne Hurst, CEO of the BGC.
The government’s proposed reforms could see licensed sportsbooks and gaming platforms scale back their customer offers – an outcome that unlicensed offshore operators would likely exploit.
Industry leaders are warning that a UK gambling tax rise could backfire, reducing tax revenue and weakening safer gambling efforts.
“The gambling black market is growing and actively targeting UK customers. Any tax rise, whether on betting or gaming, makes that offer more attractive and puts more players at risk,”
Hurst warned.
“Any tax hike would be catastrophic. This would put thousands of jobs and millions in investment at risk, while threatening the future of all sports that rely on regulated betting for funding – from racing and football to rugby league, darts and snooker.”
Gambling Tax Changes Risks Fueling Growth of the Black Market
According to the BGC, black market sites currently attract around 1.5 million British users, with annual stakes estimated at £4.3 billion – and these numbers are climbing.
In addition to the 28% willing to consider using an illegal site, 14% of punters admitted they already had, while 29% said they couldn’t confidently distinguish between a black market operator and a licensed one.
“This is a wake up call for Government,” Hurst added.
“Punters have been loud and clear, hit them with further taxes and they will walk away from the legal, regulated market, straight to the black market, triggering a spiral of decline which raises less tax, and undermines player protections.”
The BGC highlighted that its members support over 100,000 jobs and generate £6.8 billion for the UK economy, with £4 billion in tax contributions. They also fund sports directly: £350 million a year for horseracing, £40 million for English Football League clubs, and additional millions for rugby league, darts and snooker.
Meanwhile, the latest NHS Health Survey for England estimates the rate of problem gambling at just 0.4% of the adult population, reinforcing the BGC’s message that the vast majority of British punters bet safely and responsibly.