Betting and Gaming Council CEO Grainne Hurst has rallied against ‘fantasy economics’ driving the calls for tax hikes on the gambling sector.
A Guardian report revealed that Rachel Reeves, Chancellor of the Exchequer, is seriously considering the proposals of two think tanks to raise gambling taxes as the search for extra funding continues for the embattled government
Underlining just how significant the hike would be on the sector, Hurst said: “The current speculation around taxes is being driven by anti-gambling campaigners, based on fantasy economics, and are simply not credible.
“I want to be very clear with the government, any further tax rises now will not only slam the brakes on growth for our sector, but it will threaten jobs and completely derail horse racing.
“Our industry is at a crossroads as we seek to implement the measures contained in the White Paper, measures that will cost our sector over £1bn. We also can’t ignore the new levy on research, prevention and treatment for problem gambling, which will raise £100m a year from bookmakers.
“After so many years of uncertainty, we need stability to deliver sustainable investment, not further change which threatens to undo that contribution.”
Online casino games are thought to be at the centre of potential tax hikes, as part of a campaign pushed by multimillionaire Labour donor, Derek Webb.
The Institute for Public Policy Research (IPPR), which put forward the proposals, said as much as £2.9bn could be raised now, a figure growing to £3.4bn by 2030 through an increase in remote gaming duty to 50%, more than double the 21% it currently sits at.
Additionally, another think tank backed by Webb, the Social Market Foundation, is reportedly looking at a proposal that would have a smaller impact on the industry, but still strengthen government finances.
However, Hurst also issued a stark warning on the black market: “Any new taxes now risks giving a leg-up to the lurking menace of the black market, which is hoovering up disaffected customers with eye-catching offers but none of the protections that are in place in the regulated market.
“Customers have been hit hard for years, with increasing pressure on the cash people have available to spend on the hobbies they enjoy, once bills and taxes are paid. Now is not the time to ramp up that pressure.
“Betting and gaming remains a hugely popular pastime in this country, with around 22.5 million people having a flutter each month, and it is enjoyed safely by the overwhelming majority. Our members are a Great British export and genuine global leaders, delivering enormous economic goods in city centres, on high streets and in the growing online sector.
“We want to partner with the government to see the right, proportionate regulations, and a stable tax regime, which doesn’t hit customers, doesn’t raise the attraction of illegal operators and doesn’t derail the horseracing industry, but instead delivers on the government’s growth agenda.”
