Two weeks ago, reports suggested that the new Labour government might be considering a tax hike for the gambling sector. These rumors sent shockwaves across the industry, causing operators’ stock to slump. However, gaming companies can rest easy now as no tax hike is on the horizon.
No Tax Hike for the Gambling Sector
The Labour Party unveiled its first budget in some 15 years. As many expected, it outlined tax increases across the board, in line with the government’s earlier plans to fill a £22 billion “black hole” the Conservatives allegedly left.
In total, the government hopes to raise an extra £40 billion in taxes. If the gambling sector were to receive a tax increase, it could have raised an additional £3 billion a year, experts had suggested.
While some supported the potential increase, industry representatives were wary of its implications, emphasizing that it would hurt the market. British gambling is already dealing with reforms and changes and does not need extra woes, industry proponents argued.
Luckily for gambling industry stakeholders, the new budget outlined no increase in gambling duties.
BGC Is Pleased with the Outcome
Industry representatives shared their thoughts on the new budget. Grainne Hurst, the chief executive officer of Britain’s Betting and Gaming Council, welcomed the absence of a tax hike, appreciating the fact that the government has considered the industry’s points.
We have been clear, any duty rises now would have hit customers, prevented growth, risked jobs and bolstered the unsafe, unregulated gambling black market. Government has listened to the BGC and our members, got the balance right, and rejected calls from anti-gambling prohibitionists seeking to threaten jobs and growth.
Grainne Hurst, CEO, BGC
Hurst added that the BGC members can now look to support the government’s growth agenda by generating jobs, investment and extra tax proceeds.
In the meantime, the BGC will continue to study the impact that increased Employers’ National Insurance Contributions will have on BGC members, especially smaller and independent operators.
Hurst also noted that BGC members remain committed to enacting the Gambling Act reforms, in accordance with the white paper, which called for higher standards.
Britain’s decision to keep gambling taxes intact comes several days after France similarly decided against raising the gambling tax.
