The Betting and Gaming Council (BGC) praised the government for achieving the “right balance”, noting that the gambling industry avoided significant tax increases in the budget presented by Rachel Reeves.
In this first Labour Party budget in nearly 15 years, it was expected that, after active lobbying by think tanks, the gambling sector would face serious tax pressure, as the Labour Party planned to raise taxes by £40 billion ($48.5 billion).
Stephen Hodgson, Deputy Director of Tax at Entain, described the decision to avoid significant tax increases on the gambling industry as ‘a sensible decision’. He also supported the initiative to start consultations on the reform of online gambling taxation in the future.
The Betting and Gaming Council also backed this decision. CEO Grainne Hurst emphasized that ‘any duty rise would have hit customers, prevented growth, risked jobs and bolstered the unsafe, unregulated gambling black market’.
She added: “The Government has listened to the BGC and our members, got the balance right, and rejected calls from anti-gambling prohibitionists seeking to threaten jobs and growth.
“With policy for the sector already set, our members can look to support the Government’s ambitious growth agenda, generating tax, jobs and investment across the nation while continuing to support sports like horseracing.”
Nonetheless, Hurst warned that “while gambling taxes have not been increased, we will analyze how the rise in employers’ National Insurance contributions will affect BGC members, particularly smaller operators such as independent bookmakers and land-based leisure companies, including casinos.”
Hurst noted: “BGC members contribute £6.8 billion ($8.2 billion) to the economy, generate £4 billion ($4.8 billion) in taxes, and support 109,000 jobs.
“The regulated betting and gaming industry also provides funding for some of the country’s most popular sports.
“According to a report prepared by EY at the request of the BGC, horse racing benefits to the tune of £350 million ($425 million) annually, the English Football League and its clubs receive £40 million ($48 million), and snooker, darts, and rugby league receive over £12.5 million ($15 million).
“BGC members are working with the Government and the Gambling Commission to deliver the proposals contained in the White Paper, many of which we called for to raise standards.”
Richard Williams, Partner at Keystone Law and Gaming, Licensing and Regulatory Lawyer, took to Linkedin to warn that “In light of these proposals, it appears that remote gambling duty will be merged into a single tax in due course and at a single rate.
“On the basis that the 21% rate of remote gaming duty is unlikely to be reduced, the most likely outcome is that remote betting/pool betting duty will also be increased to 21% of GGY in the not-too-distant future. 2025 is likely to be negative for the remote gambling industry, but for now, the feared duty increases have not materialized.”
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