Gambling Industry Pushback Grows as BGC Chief Dismisses Social Harm Concerns

Industry Warns Higher Taxes Could Cost Jobs and Funding for Sport

Hurst argued that the betting sector already contributes fairly to public finances and insisted that further tax rises could lead to job losses across the industry, the closure of high street betting shops, and reduced sponsorship funding for both professional and grassroots sports. She also suggested that customers may be driven toward unregulated offshore websites if the cost of legal play rises too sharply.

Her remarks surprised several MPs, including committee chair Meg Hillier, who asked Grainne Hurst whether she truly believed gambling did not result in social harm. According to reporting by The Guardian, Hurst maintained her position while stressing that operators take every possible action to reduce risks for vulnerable players.

The comments come as the government considers raising taxes on online casinos and gaming machines, products that are widely associated with higher rates of addiction and financial harm. Major operators such as Betfred and William Hill’s parent company have already warned that increased taxation could trigger significant downsizing. Betfred has suggested that as many as 1,287 high street locations may be forced to close, while William Hill has indicated that up to 200 shops could be at risk if the tax changes are implemented.

EY Report Claims Gambling Tax Hikes Could Backfire

Hurst’s position aligns with analysis from EY (Ernst & Young), commissioned by the BGC, which warned that certain proposals presented by the Social Market Foundation and the Institute for Public Policy Research could result in the loss of up to 40,000 jobs, reduce the UK economy by approximately £3.1 billion ($4.1 billion), and push as much as £8 billion ($10.6 billion) in bets into the black market.

• See also: UK Debate on Higher Gambling Taxes

The EY report further argued that steep increases in remote gaming duty, such as raising the tax rate from 21% to 50%, would likely raise far less revenue than anticipated once broader economic effects and consumer migration are taken into account. Hurst pointed to these findings as evidence that the government should focus on long-term stability rather than short-term revenue generation, particularly during a period when the industry claims to be increasing investment in safer gambling measures.

Former Paddy Power Executive Criticizes Industry Narrative

Not all expert testimony supported the BGC’s approach. Stewart Kenny, co-founder and former CEO of Paddy Power, told MPs that the current business model encourages players to shift from relatively low-risk betting to more harmful and addictive products. He described it as a system structured to increase risk exposure and called for higher taxation on the most dangerous types of gambling, including online gaming machines.

Following the hearing, Hillier criticized industry representatives for what she described as an unwillingness to acknowledge gambling-related harm, calling the stance “indefensible” at a time when addiction-related inquiries and financial support requests continue to rise in the UK.

• Check also: UK Betting Turnover Continues Decline

With Chancellor Rachel Reeves preparing policy decisions in the November budget, the clash highlights a deepening divide between policymakers seeking to increase tax revenue and enhance player protection, and the gambling industry, which is focused on safeguarding profitability and maintaining the viability of licensed operations. The outcome of this debate may shape the regulatory landscape for British gambling for years to come, as both sides attempt to influence reforms in one of Europe’s largest betting markets.