Industry Warns of Heavy Job and Revenue Losses if UK Gambling Tax Increases

The Betting and Gaming Council (BGC) has cautioned that proposed gambling-tax increases in the United Kingdom could cost the economy up to £3.1 billion and eliminate around 40,000 jobs. 

The warning follows an EY-Parthenon economic study that modelled several scenarios involving higher betting, remote-gaming, and machine-gaming duties.

Under a moderate tax rise, where duties converge at approximately 21 per cent, the Treasury would collect roughly £250 million in additional revenue, but the report forecasts a £400 million increase in black-market gambling and several thousand job losses. 

A more aggressive increase—raising remote-gaming duty to 50 per cent and betting duty to 25 per cent—could see black-market activity rise by nearly £6 billion and industry output fall by more than £2 billion.

The analysis highlights the policy trade-off between revenue generation and market stability. Operators warn that higher tax burdens would erode profit margins, limit innovation, and restrict investment in safer-gambling initiatives. Regulators and policymakers face pressure to balance fiscal ambition with consumer protection and employment retention.

For investors, the findings add to uncertainty surrounding UK-focused gaming stocks, where profitability may depend increasingly on tax predictability. For the government, any short-term fiscal gain must be weighed against potential long-term contraction in an industry that contributes significantly to tax receipts and sports sponsorship.