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UK gambling tax overhaul may destabilize racing and boost black market, warn BGC and BHA. New duty proposal sparks serious concerns from industry leaders.
The UK government’s plan to reform online gambling taxation has triggered alarm among industry stakeholders, with leading voices warning thiis proposal could threaten the financial stability of the sector. On April 28, 2025, the Treasury launched a consultation titled The Tax Treatment of Remote Gambling, which seeks to merge three existing taxes—General Betting Duty (GBD), Pool Betting Duty, and Remote Gaming Duty (RGD)—into a single Remote Betting and Gaming Duty (RBGD).
Currently, the gambling sector is taxed at varying rates depending on the type of activity. General Betting and Pool Betting are taxed at 15%, while Remote Gaming (such as online slots and casino games) is taxed at 21%. The government argues that a unified tax would simplify the system, reduce administrative burdens, and better reflect technological changes in the gambling landscape.
The Impact on The Gambling Sector
The UK’s online gambling sector faces significant upheaval as industry leaders unite in opposition to the Treasury’s proposed tax reforms. Operators and regulatory bodies alike are warning that the changes could destabilise the market, undermine the financial foundation of horse racing, and inadvertently drive consumers toward unregulated platforms. Many argue that, rather than protecting players and enhancing revenue, the proposals threaten to erode long-term sector viability. If you want to read experts’ thoughts on this, here’s what Steven Ellis, Editor-in-Chief of BonusBruce.org – a leading no deposit bonus guide – had to say:
“The proposed tax overhaul risks dismantling the carefully regulated framework that protects consumers and ensures industry sustainability. It is a dangerously short-sighted move with consequences that could take years to reverse.”
The Betting and Gaming Council (BGC) has similarly urged the government to reconsider, warning that the proposals represent a “catastrophic” threat to one of the UK’s most valuable entertainment sectors. Grainne Hurst, CEO of the BGC, called the plan “utterly self-defeating,” warning that aligning GBD with the higher RGD rate would have a devastating effect on British racing as well as the wider gambling industry.
Increased Costs May Drive Players to the Black Market
Another notable concern raised by the BGC is the risk of unintentionally boosting the gambling black market. The proposed changes could increase operating costs for regulated operators, which may in turn result in higher costs for customers. Faced with reduced value, many players could potentially be lured toward unregulated offshore gambling sites—platforms that do not pay UK taxes or adhere to the country’s safer gambling standards.
According to a report by PricewaterhouseCoopers (PwC), nearly 200,000 British users are already engaging with unlicensed gambling websites annually. Industry experts worry this number will only grow if the regulatory burden intensifies.
Impact on Racing and Employment
The British Horseracing Authority (BHA) has also voiced concern, with Greg Swift, Director of Communications, emphasising the importance of betting income to the racing industry. UK horse racing receives a significant portion of its funding from betting levies, which could be impacted by reduced turnover and lower operator profitability. With over 100,000 jobs connected to the regulated gambling sector, including thousands tied to horse racing, any shift in tax policy must weigh economic impact alongside administrative simplicity.
The Road Ahead
As it stands, the government’s consultation remains open until 21 July 2025, offering stakeholders a platform to express their views. Importantly, the consultation does not yet propose a specific rate for the unified tax, which will be decided later during the budget process.
So, while the government hopes to simplify and modernise the tax structure, critics argue that without these reforms being carefully calibrated, the reform risks backfiring—hurting tax revenues, reducing regulatory oversight, and weakening both the gambling and racing industries.
