Gambling tax hike could drive nearly a third of UK punters to illegal sites, warns BGC

A proposed tax increase on betting and gaming could push nearly a third of UK gamblers towards the illegal black market, according to a new YouGov survey commissioned by the Betting and Gaming Council (BGC).

The poll revealed that 28% of punters would turn to unregulated platforms, which often provide better odds and bonuses because they do not pay taxes or follow UK regulations.

The warning comes as the Treasury reviews potential changes to the way online gambling is taxed—changes the industry says could push more gamblers toward unsafe and illegal sites.

BGC CEO Grainne Hurst said that any increase in tax would be “catastrophic,” warning it would drive players to the black market, endanger jobs and investment, and threaten vital funding for sports such as horse racing, football, rugby league, darts, and snooker.

“Balanced regulations and a stable tax regime are the best defence against the black market,” Hurst said. “This is a wake-up call for government, 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 survey also found that 14% of gamblers already use illegal betting sites, while 29% said they would not be confident in identifying whether a site was legal or not.

A separate BGC-commissioned study estimates that 1.5 million Britons gamble up to £4.3 billion (US$5.03 billion) a year with unregulated operators. Despite the rise in black market activity, the regulated industry remains a major contributor to the UK economy, supporting 109,000 jobs, generating £6.8 billion (US$7.96 billion) in economic activity, and contributing £4 billion (US$4.68 billion) in taxes annually.

It also provides £350 million (US$409 million) a year to horse racing through levy, media rights, and sponsorship, along with £40 million (US$46.8 million) to the English Football League and millions more to other sports.

“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," Hurst added.