The Betting and Gaming Council (BGC) has issued a stark warning about the UK Government’s latest proposal to overhaul the taxation of online gambling, suggesting that the changes could have severe financial and regulatory repercussions for the sector.
The Government’s new consultation, titled “The Tax Treatment of Remote Gambling,” proposes replacing the existing trio of gambling taxes—General Betting Duty, Pool Betting Duty, and Remote Gaming Duty—with a single, unified tax known as the Remote Betting and Gaming Duty.
Currently, different forms of online gambling are taxed at different rates. The Government argues that consolidating them under one system would simplify administration, reduce compliance costs, and better reflect technological shifts in the gambling landscape.
However, the BGC fears that a unified tax could result in higher costs for both licensed operators and consumers, potentially driving players towards unregulated offshore websites that pay no UK taxes and offer fewer consumer protections.
Grainne Hurst, CEO of the BGC, stated:
“Raising taxes further now on regulated betting and gaming through a new single tax would be utterly self-defeating for the Government. Any potential further increase in taxes on our members, so soon after a White Paper which cost the sector over a billion pounds in lost revenue, will not raise more money for the Treasury.”
Hurst also warned that raising General Betting Duty to match the higher Remote Gaming Duty rate would be “catastrophic for Racing’s fragile finances,” underscoring the interconnectedness of gambling and horse racing industries.
This is not the first time the BGC has voiced concerns about regulatory burdens and the growing threat posed by black market operators. In recent discussions at DCMS and GAMLG events, the BGC emphasised the need for greater collaboration to ensure a balanced regulatory environment that protects consumers while supporting the licensed industry.
The consultation remains open until 21 July 2025, and the proposed tax rate under the new system has not yet been announced. As the debate intensifies, industry stakeholders are expected to lobby vigorously to ensure that any tax reforms do not inadvertently weaken the regulated sector or undermine the government’s broader objectives for gambling reform and safer play.