65% of Regular Gamblers Would Consider Unlicensed Sites If Taxes Rise
A new YouGov survey shows that 65% of regular bettors believe higher gambling taxes would push customers toward unregulated sites. The findings come as the UK Government considers major reforms to remote gambling taxation, raising concerns across the regulated industry.
Survey Highlights Risk of Customer Migration
The Betting and Gaming Council (BGC) commissioned the poll amid the Treasury’s consultation on the Tax Treatment of Remote Gambling. The proposed changes aim to create a single tax rate across online betting and gaming. Currently, these segments are taxed differently.
The YouGov survey asked regular punters how they might react if betting became more expensive due to increased taxes. Nearly two-thirds said they believed such a change would lead customers to unregulated gambling sites that pay no tax and offer no consumer protection.
Industry Voices Concern Over Market Impact
Grainne Hurst, CEO of the BGC, warned that the Government’s plan could have unintended consequences.
“This shocking statistic proves what’s at stake if the Government forces through a self-defeating tax hike on ordinary punters.”
Hurst added that the change could drive customers away from licensed operators into the illegal online market, which lacks the same safety standards and regulatory oversight. “It’s clear it will not raise more tax,” she argued, “it simply risks forcing huge numbers of customers out of the regulated market.”
Black Market Already Holds Significant Share
According to a separate study for the BGC, an estimated 1.5 million UK residents wager up to £4.3 billion annually via black market operators. These platforms do not pay tax, do not support British sport, and often target vulnerable individuals, including those who have self-excluded from legal sites.
While 65% of regular punters warned of a shift to the black market, only 23% said it was unlikely that customers would move away from regulated platforms in response to tax hikes.
The BGC highlighted that its members contribute significantly to the UK economy. The sector supports 109,000 jobs, generates £6.8 billion in economic activity, and contributes £4 billion in tax revenue.
The regulated market also plays a vital role in supporting British sport. BGC members fund horseracing with £350 million annually through sponsorships, media rights, and the Levy. They also contribute £40 million to the English Football League and support other sports including rugby league, darts, and snooker.
Broader Gambling Trends Remain Stable
Despite policy debates, most UK adults continue to gamble without signs of harm. Around 22.5 million adults place bets each month. According to the NHS Health Survey for England, problem gambling affects 0.4% of the adult population.
As the Government weighs changes to the remote gambling tax regime, industry figures stress the need to balance revenue goals with the risks of expanding the unregulated market.
