UK gambling tax risks jobs and unfair burden on operators

The Government Must Protect Land-Based Businesses

Gambling industry warns 1% levy could threaten jobs and profits

The BGC would accept a mandatory levy if the new system would ensure mandatory contributions and continued independence of funding allocation. In addition, the commission said that land-based companies, who have inherently higher expenses, should pay less than their online counterparts.

The BGC disagrees with the proposed blanked 1% fee on all members because of the differences between the businesses within the gambling industry. A recent industry analysis, the commission pointed out, shows that a new blanket 1% statutory levy to land-based operators would be the equivalent of a 10-15% hit on post-tax profits because of the fixed costs which do not apply to iGaming companies.

The BGC's chief executive, Michael Dugher, voiced his thoughts on the matter:

We want to see continued sustainable funding for RET provided it recognizes the fact land-based operators are under greater cost pressures, so there has to be appropriate mitigation, and that funds continue to be distributed effectively and genuinely independently.

Michael Dugher, CEO, BGC

Dugher added that the union's largest members already voluntarily pay 1% to fund RET services. These companies, he said, want to be sure that their money would be used to fund independent evidence-led research.

Dugher noted that it is imperative to maintain gambling harm rates low and make sure that people with gambling disorders can receive the help they need. He noted that there is "some brilliant treatment" available in the third sector and noted that the government should make sure not to put that provision at risk.

What's important is that the money goes to helping the tiny minority of people who need it, not wasted on the cottage industry of anti-gambling prohibitionists, masquerading their biased work as "research."

Michael Dugher, CEO, BGC

The CEO also emphasized that the government should be careful not to jeopardize the jobs of people within the industry when introducing a new tax.

The BGC concluded that it supports the gambling white paper and considers it an opportunity to raise standards and deliver jobs and growth. However, the union is firm that change should be handled responsibly and in a way that will not amplify harm by channeling people toward the dangerous black market.