With few other places to turn, the Observer has suggested that the beleaguered Chancellor of the Exchequer now views the gambling industry as an easy place to squeeze fresh tax revenue. Time to buckle down.
After the chancellor sent markets spiraling by crying in the chamber two weeks ago, new rumours have emerged in the Observer that, handcuffed as she is by manifesto pledges not to cut public spending, Rachel Reeves is contemplating a hike in the tax charged on gambling transactions to plug the gap in the public coffers.
As previously reported in Coinslot, the Gambling Commission and the Treasury are already in consultation over a potential unification of the three existing betting duties: general betting duty (presently 15 per cent), pool betting duty (15 per cent) and remote betting duty (21 per cent).
Ongoing discussions float the prospect of a new regimen instituting a flat 21 per cent tax rate across-the-board: but lobby group the Institute for Public Policy have suggested the government go further, and keep the present system but double both GBD and RBD respectively: claiming gambling business is an easy target to squeeze without the risk of public upset.
The difficulty with this argument, and not factored into the fiscal vision of IIP, is that the statutory levy launched this April is already taking £100m out of the amusements, gaming and gambling sector before any Treasury tax rise is taken into consideration. And with the NIC hike already introduced in the last budget, one is left wondering where this money can be found within the industry and the impact it will have on the land-based sector in particular which has rampant business rates to meet on the local level.
For its part, meanwhile, the betting industry isn’t taking these suggestions lying down: the latest statement from Betting and Gaming Council CEO Grainne Hurst said that “any further ax rises will not only slam the brakes on growth for our sector, but it will threaten jobs and completely derail horseracing.”
Tax hike could push 28 percent of gamblers to black market, warns BGC
A proposed rise in gambling taxes could drive nearly one in three punters to use illegal betting sites, according to a new YouGov poll commissioned by the Betting and Gaming Council.
The survey found that 28 percent of gamblers would consider using unregulated platforms, which often offer more attractive odds due to their avoidance of taxes and regulations. BGC CEO Grainne Hurst warned the government that any tax increase would be “catastrophic,” with wide-reaching consequences for both the regulated market and British sport.
“Balanced regulations and a stable tax regime are the best defence against the black market,” she said. “This is a wake-up call for government, punters have been loud and clear, hit them with further taxes and they will walk away from the legal, regulated market, straight to the black market, triggering a spiral of decline which raises less tax, and undermines player protections.”
The poll also revealed 14 percent of gamblers already use illegal sites, while 29 percent admitted they may not be able to distinguish between legal and illegal operators.
