A recent survey commissioned by the Betting and Gaming Council (BGC) has suggested that any potential UK government tax increase on online gambling sites would push a large number of players towards unregulated and black market betting platforms. Raising further concerns about player safety, compliance monitoring tools and the lack of problem gambling tools.
BGC Research Says UK Gambling Tax Rise Would Increase Black Market Activity
BGC Research Says UK Gambling Tax Rise Would Increase Black Market ActivityAnd even though there are no firm details of how this will be implemented, or even how much – there are already growing concerns.
As a result, a section of customers playing the regulated UK online betting sites were surveyed with the YouGov findings saying that up to 65% of bettors would be willing to use unregulated sites if these tax increases were passed onto them.
BGC Research Says UK Gambling Tax Rise Would Increase Black Market Activity, has also alerted to any tax hikes are unlikely to generate the expected level of revenue.They’ve also raised concerns about player safety at ‘black market’ sites – with the regulated offering having safer betting rules, regulations, compliance monitoring, and problem gambling safe-guarding tools in place to protect customers.
In addition, the BGC have also expressed worries, if these tax rises came into force, about the general financial health of some sports – like horse racing, which relies largely on betting turnover to operate.
14 Million UK Adults Gamble Each Month And Generate Almost £11bn Annually
At present the UK gambling sector is also heavily regulated with a reported 14 million adults gambling each month and these players generate up to £10.9bn in GGY (gross gambling yield) annually.
BGC Research Says UK Gambling Tax Rise Would Increase Black Market Activity, are taxed – if these firms have to cover this cost in other ways it’s ultimately going to be their customers that will fork the bill.Which is why many are concerned these players will either be turned away from betting full stop, or head to the unregulated sites.
At present online gaming and sports betting is taxed at separate rates – but in May the HM Treasury showcased a new consultation that was steered towards a single new tax.
BGC CEO Grainne Hurst responded to the findings
She said these stats were “shocking” and further highlight just what is at stake for the industry if the UK government makes these tax increases on everyday punters.
“This is a wake-up call for the government, punters have been loud and clear, hit them with further taxes and they will walk away from sports like racing, straight to the black market, triggering a spiral of decline.”
“Any tax rises would make a mockery of the Government’s growth strategy and be catastrophic for horseracing, which is already facing a bleak financial outlook.”
How Did The Survey Work?
It’s reported that customers that took part in the survey were given questions or scenarios. For example.
BGC Research Says UK Gambling Tax Rise Would Increase Black Market ActivityWith the responses up to 23% of people responding by saying that thought any tax rise is unlikely to impact on customers swaying towards the unregulated betting sites.
With Hurst Adding
“It’s clear it will not raise more tax, it simply risks forcing huge numbers of customers out of the regulated market, with its world leading standards on player safety, into the arms of the growing, illegal, unregulated and unsafe gambling black market online,”
The findings also revealed that 15%, which is approx. 2.8m bettors in the UK said they’d known of at least one illegal betting site already.
BGC Research Says UK Gambling Tax Rise Would Increase Black Market ActivityWith the finalizing the findings by saying.
BGC Research Says UK Gambling Tax Rise Would Increase Black Market Activity
