UK gambling lobby steps up to block tax hike

The UK gambling industry is busy with a high-profile campaign in an attempt to head off a potential rise in betting taxes. With the Treasury exploring plans to harmonise remote gaming duty and general betting duty, gambling executives fear steep increases, which could possibly add up to 35% for online gaming.

There were suggested rates of 41% for harmful gambling products, provoking a rush in the Betting and Gaming Council (BGC) to influence some of the key political figures and the UKGC.

The gambling sector, which generated £15.6 billion in 2024 and paid £3.6 billion in duties, warns that excessive tax hikes could hurt investment and player protection.

BGC turns on the charm

As part of the summer charm offensive, the BGC is hosting a darts-themed event organised by the Labour Staff Network for the Labour special advisers and MPs, with over 100 Labour staffers present.

Behind the scenes, BGC leaders have been briefing MPs, including Jo Platt, Gareth Snell and Adam Jogee, to underline the potential economic fallout from increased levies.

Michael Dugher, BGC chair and former Labour MP, has met Labour chiefs of staff and remained in contact with Chancellor Rachel Reeves, although no formal meeting has taken place.

The BGC has also submitted evidence to the Treasury based on an EY-product report, arguing that higher taxes could reduce jobs, investment, and sports sponsorships. Senior representatives were seen at political fundraisers, including one for Labour candidate Gregor Poynton, attended by Morgan McSweeney and Peter Mandelson.

High stakes in parliament

The lobbying push is not limited to only Labour. The gambling lobby also courted Conservative MPs with a "Conservative in Sport" drinks reception, which brought shadow ministers and the chairs of the key select committees.

The BGC feel it is important to maintain ties with both sides of the political spectrum and this is their way to ensure their arguments reach decision-makers regardless of party lines.

Many critics have warned that the close relationship between industry leaders and politicians risks influencing independent regulation. Advocates for public health say that stricter regulations are necessary, particularly in light of the growth of problem gambling.

Andy Burnham (the mayor of Greater Manchester) and Labour MP Dawn Butler are advocating for additional authority to councils about banning new betting establishments in locations where there is a significant risk of gambling-related harm.

The industry counters that UK casinos already operate under strict regulations, and they contribute significantly to the economy through taxes and sponsorships. Operators have claimed that heavier taxes will drive players to unsafe and illegal casinos.

Which could cause more harm to both consumers and public revenue. Only time will tell if the government sides with public health campaigners or the well-connected gambling lobby.

BHA leads the charge against gambling tax rise

The British Horseracing Authority (BHA) has intensified its opposition to the government’s proposed rise in remote gambling duty, warning it could cost the sport up to £330 million over five years and threaten 3,000 jobs, particularly in key racing hubs like Yorkshire and Gloucestershire.

The BHA's campaign has gained backing from influential organisations such as the Jockey Club, Racehorse Owners Association and Arena Racing Company. They warn that the tax could harm rural economies and hurt the British heritage. There is also a petition to pressure the government to rethink the policy.

How is the industry shaping regulations?

The UK gambling sector is working constantly to change political and regulatory decisions through a mix of networking, strategic lobbying and public campaigning. It has also ordered economic studies, while briefing MPs and uniting stakeholders under campaigns like "AxeTheRacingTax".