BGC raises alarm over tax plans and rise of illegal betting sites

The Betting and Gaming Council has issued a formal warning that proposed tax increases on the regulated gambling sector in the United Kingdom risk accelerating the growth of unlicensed operators and illegal betting platforms. The industry body argues that while the Government’s stated objective is to strengthen consumer protection and reduce gambling-related harm, certain fiscal measures may produce unintended consequences that undermine those goals.

The concerns follow new polling conducted by Anacta and reported in February 2026. According to the findings, a significant proportion of bettors believe higher taxation could make regulated betting less attractive and inadvertently encourage participation in unlicensed markets. The issue has emerged at a time when the Government is also consulting on further restrictions, including proposals to prevent unlicensed operators from sponsoring football clubs, including those in the Premier League.

Public attitudes toward tax increases and regulation

The Anacta polling provides insight into how regular bettors perceive the evolving regulatory landscape. Among those surveyed who place bets, 52 percent said that higher taxes would make punters more likely to use unlicensed black market sites. A further 66 percent stated that tax increases would make betting and gaming less enjoyable, while 57 percent expressed the view that gambling in the United Kingdom is already heavily regulated.

These figures suggest that a substantial portion of consumers believe the regulatory framework is robust and that additional fiscal pressure may not deliver meaningful improvements in safety. Instead, critics argue that rising costs imposed on licensed operators could reduce competitiveness, limit promotional offers and alter pricing structures in ways that push some consumers to seek alternatives.

It is estimated that approximately 22.5 million adults in the United Kingdom place a bet each month across various channels, including online platforms and physical premises. The regulated sector therefore represents a significant segment of consumer activity. Industry representatives maintain that preserving a balanced and attractive regulated environment is essential to ensuring that consumers remain within systems that are subject to oversight, compliance standards and harm prevention requirements.

The Government’s broader gambling strategy

The UK Government has embarked on a wide-ranging reform agenda in recent years aimed at modernising gambling legislation and enhancing safeguards. Proposals have included affordability checks, advertising restrictions and a statutory levy to fund research education and treatment related to gambling harm.

In parallel, ministers have launched a consultation process designed to prevent unlicensed operators from sponsoring football clubs, including those competing in the Premier League. The objective of that consultation is to limit the visibility and perceived legitimacy of operators that fall outside the UK’s regulatory framework.

While the industry has broadly supported measures targeting illegal operators, the Betting and Gaming Council contends that increasing taxes on compliant businesses may conflict with those enforcement efforts. The Council argues that if licensed operators face higher operational costs and reduced margins, they may struggle to compete with unlicensed platforms that do not incur similar obligations.

BGC response and industry perspective

Grainne Hurst, Chief Executive of the Betting and Gaming Council, outlined the organisation’s position in direct terms. She stated: “When you tax responsible, regulated betting and gaming companies harder, you do not reduce demand you simply drive customers towards the unsafe, unregulated black market.

“Illegal gambling sites do not pay tax. They do not contribute to British sport. They do not invest in safer gambling and they do not protect vulnerable people.

“If the Government wants growth and genuine consumer protection, it must back the regulated sector not make it less competitive against criminals.”

The Betting and Gaming Council represents many of the largest licensed betting and gaming operators in the United Kingdom. Its members are subject to regulatory oversight by the UK Gambling Commission and must comply with strict requirements relating to anti money laundering, consumer protection and responsible gambling practices.

The Council’s position is that regulated operators form a critical line of defence against criminal activity and consumer exploitation. By contrast, unlicensed platforms operate outside the scope of domestic enforcement and may not adhere to standards regarding age verification, self exclusion tools or financial safeguards.

Economic contribution of the regulated sector

Beyond the consumer protection debate, the regulated betting and gaming industry also plays a notable role in the national economy. According to industry figures, the sector supports approximately 109,000 jobs across the United Kingdom. These roles span retail betting shops, online operations, technology providers compliance teams marketing functions and related services.

The sector is also said to contribute around £6.8 billion to the economy and generate approximately £4 billion in tax revenue annually. Those funds support public services including the National Health Service schools infrastructure and local community projects.

Industry representatives argue that sustained fiscal pressure could reduce investment in innovation and compliance while also affecting employment levels. They maintain that a stable and proportionate tax environment is essential to safeguarding economic contributions alongside regulatory standards.

The risk of channel shift to illegal markets

A central concern expressed by the Betting and Gaming Council relates to what is commonly described as channel shift. This refers to the movement of consumers from regulated platforms to unlicensed or offshore operators.

Illegal operators often advertise attractive odds fewer restrictions and fewer verification requirements. While such features may appeal to some consumers, they also remove the protective measures that are embedded within the regulated system. These include deposit limits identity verification self exclusion schemes and monitoring mechanisms designed to detect harmful patterns of play.

Regulators and enforcement agencies face significant challenges in blocking access to illegal sites particularly when those platforms operate from jurisdictions beyond UK authority. Industry bodies therefore contend that maintaining a competitive regulated market is one of the most effective ways to limit the appeal of black market alternatives.

Balancing harm reduction and market stability

The policy debate ultimately centres on how best to reconcile harm reduction objectives with market sustainability. Advocates of higher taxation may argue that increased levies can fund treatment and prevention initiatives. Critics counter that if taxation becomes disproportionate, it may weaken the very sector that is capable of implementing those safeguards at scale.

There is also the broader question of consumer autonomy and behaviour. Demand for betting and gaming services has historically demonstrated resilience across regulatory cycles. Industry stakeholders caution that fiscal measures alone are unlikely to eliminate demand and may instead redirect it.

The Government’s consultation processes and legislative reviews are ongoing. As policymakers consider next steps, the views of industry bodies consumer advocates public health experts and enforcement authorities are expected to shape the final outcome.

Conclusion

The debate over gambling taxation in the United Kingdom reflects a complex interplay between public policy objectives economic realities and consumer behaviour. The Betting and Gaming Council’s warning underscores the importance of carefully calibrating regulatory measures to avoid unintended consequences. While the Government’s commitment to harm reduction and consumer protection remains clear, the potential for increased black market activity presents a significant consideration.

A well regulated sector that is commercially viable and competitively positioned may serve as a practical safeguard against illegal operators. At the same time, continued vigilance and enforcement against unlicensed platforms will remain essential. As discussions progress, the challenge for policymakers will be to strike a balance that protects vulnerable individuals preserves economic contributions and ensures that responsible operators are not placed at a structural disadvantage.

In a rapidly evolving digital environment, regulatory precision and proportionality are likely to determine whether reforms strengthen the system or inadvertently create new risks. The outcome of this policy trajectory will have implications not only for industry stakeholders but also for millions of consumers who engage with betting and gaming services each month.

FAQs

What is the main concern raised by the Betting and Gaming Council?
The Council has warned that higher taxes on regulated operators may drive consumers toward unlicensed black market gambling sites.

How many adults in the UK place a bet each month?
Approximately 22.5 million adults are estimated to place a bet each month in the United Kingdom.

What percentage of bettors believe higher taxes could increase black market use?
According to the Anacta poll, 52 percent of bettors believe higher taxes would make punters more likely to use unlicensed sites.

Why does the industry argue that illegal sites pose risks?
Illegal sites are not subject to UK regulation and may not provide consumer protections such as age verification deposit limits or self exclusion tools.

What economic contribution does the regulated sector make?
The sector supports around 109,000 jobs contributes £6.8 billion to the economy and generates approximately £4 billion in tax revenue.

What consultation has the UK Government launched regarding sponsorship?
The Government has consulted on banning unlicensed operators from sponsoring football clubs including those in the Premier League.

What role does taxation play in harm reduction policy?
Taxation can fund treatment and prevention programmes but excessive levels may affect competitiveness and market stability.

Who is Grainne Hurst?
Grainne Hurst is the Chief Executive of the Betting and Gaming Council and represents licensed betting and gaming operators.

What is meant by channel shift in gambling policy?
Channel shift refers to consumers moving from regulated platforms to unlicensed or offshore operators.

What is the core policy challenge in this debate?
The challenge lies in balancing consumer protection harm reduction economic contribution and the prevention of illegal market growth.