UK lawmakers are considering a significant tax hike for gambling operators as part of the budget that Chancellor Rachel Reeves will announce on November 26. Sportsbooks expect to be particularly hurt by the proposal as their tax rate would effectively double to 30%, and the rate for online gambling operators would increase from 21% to 50%.
Betfred has said it could have to close all 1,287 retail establishments
The Betting and Gaming Council (BGC) is an industry body representing the interests of operators in the UK. It claims that if the new measures come into effect, they would threaten 40,000 jobs and eliminate £3bn ($4bn) in economic impact. Betfred has said it could have to close all 1,287 retail establishments if the increase comes into effect, and Evoke made similar statements by saying up to 200 William Hill sites might have to shutter.
Not everyone is as pessimistic about the possible tax increases. Paddy Power co-founder Stewart Kenny, who is no longer part of the company, gave evidence to the House of Commons Treasury Select Committee. He said he believes operators are “scaremongering” by saying they’ll have to shut stores. He also thinks that operators are guilty of “suckering” new gamblers into playing addictive games to increase their profits and that they exaggerate the black market threat.
