Gambling industry relieved after Labour party decision
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12 Nov 2024 •
Reading time: 2 minutes The UK gambling industry held its breath. The new Labour government presented its first budget in fifteen years, and there were many rumours: would they increase gambling taxes? It was quite exciting, and gambling companies’ share prices actually fell because of the concerns. But now they can breathe a sigh of relief—Labour has left gambling taxes unchanged.
Government wants to close billions in deficit without hitting gambling industry
Labour needs to raise a lot of money to tackle the £22 billion deficit. That’s why they’ve announced all sorts of tax increases in various sectors. But gambling is not one of them, despite some people thinking it was a smart idea to raise extra money from it—estimates suggest it could bring in an extra £3 billion a year. The gambling industry strongly disagreed, warning that higher taxes would disrupt their sector.
According to the gambling industry, a heavy tax burden could actually be harmful. Many players would be drawn to unsafe, unregulated gambling sites, they say. Labour apparently listened to their concerns and decided it was wise to keep gambling tax the same.
BGC expresses its appreciation for Labour’s tax decision
The British Betting and Gaming Council (BGC) could not hide its relief. CEO Grainne Hurst made no bones about her appreciation for the government: “We have always said that tax increases would hurt our customers, put jobs at risk and encourage unregulated gambling. Thankfully, the government has listened and found the right balance.”
Hurst also stressed that the BGC and its members are keen to play their part in the government’s growth policy. They want to create jobs, invest and generate tax revenue, just as Labour wants to do.
Focus on employer contributions and gambling reform
Despite the relief over gambling tax, there is another concern for the BGC. The increase in employer contributions to National Insurance could prove difficult for small and independent gambling companies. In addition, the organization reiterated its commitment to the new rules in the Gambling Act, which must ensure that the gambling sector remains safe and responsible.