Britain’s Betting and Gaming Council (BGC) has warned the government that further gaming taxes could end thousands of jobs and jeopardize the economy. Echoing widespread concerns about the UK’s mulled tax changes, the BGC encouraged the government to prioritize a healthy industry over short-term profits.

EY Warns of Devastating Economic Consequences

In its address, the BGC referred to an independent analysis by EY. Commissioned by the BGC, the report suggested that the tax changes promoted by the SMF and IPPR think tanks would risk some 40,000 jobs. That’s not all, however, as the research also predicted a GBP 3.1 billion hit for the British economy. To make matters worse, the changes could channel up to GBP 8.4 billion in wagers to the riskier black market, researchers said.

At the same time, the proposed tax changes would likely generate only a small fraction of the money claimed by the measure’s supporters, experts alleged.

The BGC emphasized that a healthy gaming industry is something beneficial to the UK economy. The council’s members alone contribute GBP 6.8 million to the economy, pay GBP 4 million in tax, and support a staggering 109,000 jobs across tech hubs such as Stoke-on-Trent, Manchester, Leeds, Nottingham, Sunderland and Warrington.

The BGC reiterated that the planned tax hikes could lead to serious consequences for this sector.

“The Figures Speak for Themselves”

For reference, both the SMF and IPPR recommended raising Britain’s gaming taxes from the current 21% on online gaming, 15% on sports betting and 20% on machine gaming. The two think tanks promote the idea of raising the online gaming taxes to 50% and the tax on sports betting to 25%.

The EY report clarified that the SMF’s proposals, in particular, are likely to cost the UK 30,200 jobs and deal a GBP 2.5 billion hit to the economy. That proposal would also redirect GBP 8.1 billion toward the black market.

In the meantime, the EY report estimated that the IPPR’s vision would lead to the loss of 40,000 jobs. Researchers also predicted that the measure would wipe GBP 3.1 billion off the sector’s economic GVA and channel GBP 8.4 billion toward the black market.

EY also countered the IPPR’s insistence that the measure would generate GBP 3.2 billion in tax revenue, instead predicting a short-term gain of only GBP 1 billion or less, if the negative economic impact has been accounted for.

The EY report also said that both think tanks have failed to consider the impact of the white paper measures.

Last but not least, the EY report projected industry growth of 4% for the 2023-2026 period instead of the rosier 31% proposed by the SMF and IPPR.

The Choice Is Clear, BGC’s CEO Says

BGC CEO Grainne Hurst said that the figures “speak for themselves” and emphasized that the tax hike would be naught but a short-term gain at the expense of the overall British economy. She said that the government should instead opt for “balanced regulations and a stable tax regime.” Hurst asserted that the SMF and IPPR’s proposals are “the complete opposite of that.”

Hurst encouraged the government to safeguard and acknowledge the British gaming industry, which is one of the best in the world.

The choice is clear: back a successful, sustainable, regulated British industry – or risk losing jobs, investment and growth.

The BGC’s report comes not long after operators warned that a tax hike would significantly hurt their businesses.