{"id":207085,"date":"2025-10-29T11:02:19","date_gmt":"2025-10-29T14:02:19","guid":{"rendered":"https:\/\/igamingbrazil.com\/nao-categorizado\/2025\/10\/29\/tax-increase-on-betting-threatens-the-economy-and-jobs-in-the-united-kingdom\/"},"modified":"2025-10-29T11:21:37","modified_gmt":"2025-10-29T14:21:37","slug":"tax-increase-on-betting-threatens-the-economy-and-jobs-in-the-united-kingdom","status":"publish","type":"post","link":"https:\/\/igamingbrazil.com\/en\/sports-betting-en-2\/2025\/10\/29\/tax-increase-on-betting-threatens-the-economy-and-jobs-in-the-united-kingdom\/","title":{"rendered":"Tax increase on betting threatens the economy and jobs in the United Kingdom."},"content":{"rendered":"\n

A new analysis by EY (Ernst & Young)<\/strong> warns that an increase in taxes on betting <\/strong><\/a>could threaten 40,000 jobs <\/strong>and cause \u00a33 billion in damage to the UK<\/a> economy<\/strong>. The research, commissioned by the Betting and Gaming Council (BGC),<\/strong> indicates that the measure would devastate jobs, harm the economy, and drive billions in bets into the illegal market. <\/p>\n\n

The plans, championed by think tanks<\/em> SMF and IPPR, would jeopardize thousands of jobs and channel \u00a38.4 billion into the illegal market<\/strong>. Furthermore, the economic contribution of the betting sector to the UK would be reduced by \u00a33.1 billion, while tax revenue would fall far short of the amount claimed by proponents of the proposal. <\/p>\n\n

How would the tax increase impact the betting industry?<\/h2>\n\n

Currently, BGC members contribute \u00a36.8 billion to the economy, pay \u00a34 billion<\/strong> in taxes, and support over 109,000 jobs. These jobs include thousands of highly skilled positions in the technology sector in regions such as Stoke-on-Trent, Manchester, and Leeds. <\/p>\n\n

However, the new tax increases threaten to undermine this success, bringing serious consequences for workers and the Treasury.<\/p>\n\n

Grainne Hurst, CEO of the BGC, stated:<\/strong> “It is now clear that these new tax increases represent a direct threat to British jobs and economic growth.”<\/em> <\/p>\n\n

She also explained:<\/strong> “The numbers speak for themselves: tens of thousands of jobs lost, billions diverted to the black market, and a potential loss of \u00a33 billion to the economy.”<\/em><\/p>\n\n

The proposals and their direct consequences.<\/h2>\n\n

Both the SMF and the IPPR recommended increasing, and in some cases doubling, taxes on gambling. Currently, betting companies pay tax on Gross Gambling Income (revenues minus customer winnings) with rates of 21% for online gambling, 15% for sports betting<\/a>, and 20% for slot machine games. The new proposals suggest rates of 50%<\/strong> for online gambling and 25%<\/strong> for sports betting<\/a>. <\/p>\n\n

An analysis of the proposals from the SMF (Social Market Foundation) showed that the measure would cost 30,200 jobs and bring \u00a38.1 billion into the illegal market. <\/p>\n\n

On the other hand, IPPR’s plans would cost 40,000 jobs and reduce the sector’s Gross Value Added (GVA) by \u00a33.1 billion. Although IPPR claimed the increases would generate \u00a33.2 billion, EY’s analysis indicates the real gain would be just over \u00a31 billion. <\/p>\n\n