The looming delivery of the November 2025 budget has sparked a storm of speculation about the potential impact of a tax increase on Britain’s economy and gambling infrastructure.
With any potential changes to taxation in a nation, there comes a sharp intake of breath from those who might lose out, and a rising chorus from campaigners to ensure their particular stance benefits from any alteration to the current rates applied to the industry.
Gambling is a massive industry in the UK, and betting runs deep in societal norms around watching or following sports. The industry’s Gross Gambling Yield (GGY), according to the Gambling Commission, is £15.1 billion ($19.84 billion).
As part of a recent article, International Coinbase found that the industry employs 58,000 people, according to the Office for National Statistics/CV Maker’s most recent use of Office for National Statistics data.
On one side of the argument are the established entertainment brands that have been adapting to the online gambling boom and the accessibility changes from physical brick-and-mortar stores to the era of mobile devices.
On the other side of the table are political and regulatory bodies seeking changes to gambling tax rates and additional measures that could yield societal benefits and enforce new regulations.
The discussion, along with a raft of campaign actions from groups such as the British Horseracing Authority (BHA), has continued to drive the narrative ahead of the UK Chancellor’s 2025 budget.
What is at stake for gambling in the UK as UK gambling tax reform looms?
As we reported, Ministers from the Treasury Select Committee interviewed a panel comprising medical specialists, former owners of gambling brands, and current regulatory figures.
One of those figures, the current CEO of the Betting and Gaming Council, Grainne Hurst, was questioned on key topics by Dame Meg Hillier MP, chair of the session, and the committee members, including Members of Parliament (MPs) Yuan Yang and John Grady.
Hurst said this can include financial pitfalls, mental health concerns, and ripple effect issues for friends and family who are impacted by the darker side of gambling.
The CEO of the BGC addressed the effect of the industry and the brands, citing that a “small minority” was touched by the perils of gambling harm and addiction.
This stance was questioned by Yang and Grady, with both on the same page that negative connotations can come with gambling, and the industry should pay a higher rate of tax to fund safeguards for gamblers at risk.
“Our CEO, Grainne Hurst, was clear throughout the session that the industry recognises gambling can cause harm and has a role to play in mitigating it. The BGC’s priority remains raising standards, promoting safer gambling, and protecting consumers.” – BGC statement to ReadWrite
“A proper tax on online slots and predatory practices would raise money while also combating problem gambling,” said Yang.
Grady followed suit, saying, “The industry must be regulated and taxed to ensure that individuals are protected and that the online gambling industry pays its fair share.”
The UK Chancellor, Rachael Reeves, also publicly stated the “fair share” message in response to questions from ITV about the upcoming budget.
‘I do think there’s a case for gambling firms to pay more,’ said the chancellor when asked if she would consider increasing the taxes gambling firms pay
‘They should pay their fair share of taxes, and we’ll make sure that that happens’ pic.twitter.com/iNPyki9EVN
— ITVPolitics (@ITVNewsPolitics) September 29, 2025
The BGC says takes social harm seriously
In the wake of the committee meeting, a BGC spokesperson told ReadWrite: “The BGC takes the issue of gambling related harm incredibly seriously.
“Our CEO, Grainne Hurst, was clear throughout the session that the industry recognises gambling can cause harm and has a role to play in mitigating it. The BGC’s priority remains raising standards, promoting safer gambling, and protecting consumers.”
Hurst has now released a statement via the BGC site, looking at the illegal gambling market, saying, “If you want safer gambling, driving punters to the black market isn’t the answer.”
The CEO continued, “I appeared before MPs alongside those calling for a massive tax hike on betting and gaming. The contrast between our positions could not have been more stark.”
That position from the BGC chief shows the widening divide between government policymakers and industry leaders who believe illegal routes will become stronger in the wake of change.
Hurst also refers to those across the table in this conversation as “opponents,” who are arguing for “punitive tax rises of up to 50% on online gaming. They claim it will curb gambling-related harm and raise billions for the Treasury. In reality, it risks achieving the exact opposite.”
Analysis by economic consultants EY warns that higher taxes could put 40,000 jobs at risk, divert £8.4 billion in stakes to the black market and wipe £3.1 billion from the sector’s contribution to the UK economy.https://t.co/nNFbMUckVb pic.twitter.com/SKlLK3Am7v
— Betting and Gaming Council (@BetGameCouncil) November 13, 2025
Hurst cited that the BGC’s stance would be up to 40,000 jobs lost, £3.1 billion ($4.1 billion) wiped from the economy, and as much as £8.4 billion ($11.1 billion) in stakes diverted to the black market if the rumours of a 50% tax increase are made real.
The CEO also mentioned that statistically, “1.5 million Brits stake around £4.3 billion a year with illegal operators.”
Rob Wood, Chief Financial Officer and Deputy CEO of Entain Group, speaking on BGC’s platform, was also cautious about the impact illegal markets could have in a retaliatory or reflexive response to taxation.
“The Netherlands raised its gambling tax to 35% this year. The result? A surge in illegal operators, now accounting for 50% of the market, and falling tax revenue. Once the black market gets a foothold, it’s hard to dislodge. We shouldn’t repeat that mistake,” he said.
As we reported, the Dutch gambling regulator Kansspelautoriteit (Ksa) was vocal around the illegal gambling sector seeing a rise in players as a result of new mechanisms introduced to halt problem gambling.
Conflicting stance from the UK Gambling Commission
In a conflicting report published by the Gambling Commission (GC), the body references a study concluded on November 6, 2025, that explored the impact of the illegal market.
Whilst the four-part approach was exploratory, the GC admitted that their in-depth delve into consumer awareness, drivers and motivations, engagement and trends, and the disruption of illegal online gambling yielded inconclusive figures and results.
Saying, “Reliable data is limited, and assumptions are often required to fill gaps — meaning that confidence in any single estimate is inherently constrained.”
Limited data on any topic means the results are difficult to define, especially with the limited data, as this restrains bodies like the GC from painting a complete picture of the estimated impact of the illegal betting scene in Britain.
The GC’s work also showed that there was no change in the metrics for visits to 1,000 unique illegal sites monitored.
“Our data shows that, by July 2025, estimated visits to illegal gambling websites had returned to broadly similar levels as in July 2024 — in other words, no overall increase was observed.”
Dr Carsten Jung, Interim Associate Director for Economic Policy and AI at the Institute for Public Policy Research (IPPR), was also interviewed by the Treasury Select Committee.
When asked by Yang about why the IPPR believed that gambling in the UK was “under-taxed,” at a rate of 22% Dr Jung responded.
“Gambling is a social harm,” he said. Raising taxation on remote gambling to 50%, increasing the gambling betting duty from 15% to 25%, and taxing other forms of gambling would raise £3.2 billion ($4.2 billion).
“This wouldn’t be a punitive taxation; it would recognize the social harms that gambling exerts on society,” concluded Dr Jung.
Hurst is firm in her position, saying that the British gambling sector is “world-class precisely because it combines entertainment with high standards of consumer protection. We should be proud of that success, not jeopardise it through fantasy economics and punitive taxes.”
A new future for British gambling economics might become a stark reality if the UK Chancellor decides to increase the tax rate. If that does come to pass, shareholders will be bracing for a little less in their pockets as a result of redefined quarterly results, and the UK gambler might be affected by the trickle-down effects.
Regulators, operators, and the average gambler will have to hold their breath just a little longer to find out if the Chancellor doubles down on betting tax levies in her budget in late November.
Featured image: Adobe Firefly
The post UK gambling tax: gathering industry storm ahead of potential budget changes appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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