Betting Tax Rise Threatens UK Economy and Jobs
United Kingdom.– October 30, 2025 – www.zonadeazar.com A proposed tax increase on betting could cost the UK economy up to £3.1 billion and divert as much as £8.4 billion to the illegal market, according to a new analysis by EY (Ernst & Young).
The study warns that the measure, intended to boost tax revenues, would instead lead to business closures, job losses, and a shift of players towards unregulated operators.
Overview
EY’s modelling shows that when indirect effects are included — such as unemployment, loss of retail outlets, and reduced industry investment — the net gain to the Treasury could fall to under £500 million.
Industry experts caution that this apparent fiscal benefit would erode quickly as consumers abandon the regulated market, further shrinking taxable revenue.
Moreover, the report notes that policymakers have overlooked the 2023 Gambling Act White Paper, which already projected a £1 billion decline in sector revenues due to tighter compliance and safer gambling requirements.
Details and Context
The proposed tax increase would hit the retail betting network, digital service providers, and media companies linked to the gambling industry, as well as thousands of jobs supported by the regulated market.
As operators face shrinking margins and growing compliance costs, the study predicts a significant contraction in both economic output and consumer protection.
“Balanced regulation and a stable tax regime ensure a growing regulated sector,” warned one industry representative.
“These proposals would achieve the exact opposite, undermining the very consumer protections that keep people safe.”
Industry Perspective
Stella David, CEO of Entain, joined the warnings, stating that additional tax rises could force shop closures across the country.
She emphasised that EY’s conclusions make it clear:
“This measure will not increase government revenue — it will dismantle one of the UK’s most competitive and well-regulated sectors.”
David also highlighted that the current regulatory system has successfully maintained player safety and tax transparency, which are now at risk due to the excessive fiscal burden being proposed.
Real Economic Impact
According to EY’s findings, the combined effects of the tax proposal would include:
- A £3.1 billion loss in national GDP.
- £8.4 billion redirected to illegal or offshore betting platforms.
- Thousands of direct and indirect job losses across the regulated gaming ecosystem.
These outcomes could weaken state oversight, reduce public revenues, and empower unlicensed operators, reversing years of progress toward a safer gambling environment in the UK.
Future Outlook
The report concludes that policy stability and fiscal balance are essential to protect the UK’s regulated gambling sector.
EY recommends a measured approach that maintains competitiveness while upholding responsible gaming standards, ensuring the industry continues to contribute jobs, innovation, and tax revenue to the British economy.
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