UK Chancellor warned gambling tax rise could fuel multi-billion black market

Britain’s Chancellor Rachel Reeves has been urged to abandon plans to raise gambling taxes after research showed Europe’s black market for betting and casinos surged to nearly £70 billion ($94.46 billion) in 2024.

Data from consultancy Yield Sec estimated illegal operators generated £69.7 billion across the 27 EU countries last year, accounting for more than 70% of total gambling sales. In Britain, around 1.5 million people are thought to use black market platforms, spending over £4 billion annually.

The government is considering increasing the levy on bookmakers from 15% to 21%, aligning them with online casino operators. Industry figures warned such a move would risk pushing more punters into unregulated markets.

“Tax rises on the UK’s regulated betting and gaming sector will only fuel the growth of the unsafe black market here,” Grainne Hurst, chief of corporate affairs at the Betting and Gaming Council, told City AM.

“This worrying research underlines the very real threat posed by the growing, unsafe gambling black market,” she said, adding that “illegal operators don’t have any protections or standards on safer gambling, don’t support sports, and don’t return a penny to the Treasury.”

Yield Sec said the surge in illegal activity was amplified by last year’s crowded sporting calendar, including the European Football Championships and the Paris Olympics.

“Crime is going to continue to thrive in the absence of monitoring, policing, enforcement, and optimisation. It is up to legal stakeholders to learn to work together,” said Yield Sec founder Ismail Vali.

Industry groups also warned that raising taxes could damage sectors such as horse racing, which rely heavily on regulated betting.