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New Report Highlights Potential Impact of Increased Tax and Regulation on UK Betting and Gaming Market

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European countries with higher tax and regulation of their betting and gaming markets are more likely to see increased black market activity, according to a report produced by PwC and published by the BGC.

The study, Impact of the taxation and regulatory environment on European online betting and gaming markets, draws clear links between restrictive policy regimes across Europe and black-market growth.

Countries such as France (57% black market), Sweden (35%) and the Netherlands (37%) have seen large proportions of their gambling markets move offshore.

By contrast, Spain and Denmark, where tax rates are moderate and licensing systems open, maintain higher levels of onshore participation – with only around 11% of gambling taking place outside the regulated sector.

The report reveals that around 5% of all online betting and gaming in the UK now takes place on unlicensed black-market websites. This is equivalent to hundreds of millions of pounds in untaxed, unregulated activity and marks a sharp rise from a previous estimate in 2021, when the black market was thought to account for only 3.3% of total spend.

The report concludes that higher effective tax rates and tighter rules consistently lead to smaller regulated markets, while jurisdictions that liberalise and maintain balanced taxation enjoy stronger growth.

The findings also challenge the assumption that higher gambling duties increase public revenues. Between 2019 and 2024, countries with tax rates below 25% of gross gaming revenue saw annual growth in tax receipts of 13%, compared to 9% in higher-tax jurisdictions.

Operators facing steeper duties typically cut back on marketing and promotions, the analysis found, making licensed platforms less competitive.

The report shows how operators respond to higher regulatory and tax environments by adjusting gross win pricing, reducing bonuses and reducing spending. This makes the player proposition less attractive.

The findings come as the Treasury prepares its Autumn Budget and reportedly considers potential changes to remote betting and gaming duties.

While Britain remains among the world’s safest and most highly regulated gambling markets, the report demonstrates the potential impact of increasing taxes.

Grainne Hurst, CEO of the Betting and Gaming Council, said: “Britain has one of the safest gambling markets in Europe but if the Treasury isn’t careful, we could quickly end up like France or Sweden, with huge black markets contributing nothing in tax, offering zero player protection, and providing no funding for sport or the economy.

“Well-balanced regulation and fair taxes protect players, raise more revenue for the Treasury, and support thousands of jobs. Unlicensed operators do none of those things.”

The post New Report Highlights Potential Impact of Increased Tax and Regulation on UK Betting and Gaming Market appeared first on European Gaming Industry News.

Betting and Gaming Council

BGC: Government Tax Hike Boost for Black Market

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The Betting and Gaming Council (BGC) has warned that the incoming British tax hikes will boost black market activity.

Based on a new polling by Anacta reported in February 2026, there are concerns that proposed UK government gambling strategies, particularly regarding increased taxes, could contradict their intended harm-reduction goals.

While ministers have launched a consultation to ban unlicensed operators from sponsoring football clubs, including in the Premier League, ordinary punters fear the Government’s new tax rises could drive millions straight into illegal gambling sites, the new poll reveals.

The poll, conducted found:

• 52% of people who bet believe higher taxes will make punters more likely to use unlicensed black market sites.

• 66% of those who bet say tax increases will make betting and gaming less enjoyable.

• 57% think UK gambling is already heavily regulated.

With around 22.5 million adults placing a bet each month, the Government’s disastrous tax hikes will drive millions more to the harmful black market.

Grainne Hurst, Chief Executive of the Betting and Gaming Council, said: “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 regulated sector supports 109,000 jobs, contributes £6.8 billion to the economy and generates £4 billion in tax revenue, funding everything from the NHS to schools and local communities.

The post BGC: Government Tax Hike Boost for Black Market appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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Agrupación de Plataformas de Apuesta en Línea

BGC Enters Cooperation Agreement with Chile’s Online Operators’ Group

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The Betting and Gaming Council (BGC) has signed a Cooperation Agreement with Chile’s Agrupación de Plataformas de Apuesta en Línea (aPAL), as part of ongoing efforts to support the development of a sustainable and well-regulated online gambling market in Chile.

The agreement brings together the BGC, which represents around 90% of the UK’s regulated betting and gaming industry, and aPAL, a group of international online betting operators that have been working since 2022, to support the introduction of modern gambling regulation in Chile.

While online gambling is currently not prohibited but also unregulated, Chile already has a land-based casino sector, horseracing and a lottery duopoly, and a draft bill to regulate online operators has been under discussion for several years. Following recent elections, a new Chilean Government is now in a position to advance with the legislation, potentially introducing a licensing regime as early as 2027.

Under the Cooperation Agreement, the two organisations will work together to share international experience and evidence, strengthen the knowledge base around gambling regulation, and engage constructively with policymakers and stakeholders on the development of a sustainable licensing framework in Chile.

Carlos Baeza, Chilean lawyer and representative of aPAL, said: “Chile has a real opportunity to introduce a modern, robust regulatory framework for online gambling that protects consumers, tackles illegal activity and delivers meaningful public benefits. At present, online gambling operates entirely outside any regulatory oversight, leaving players without safeguards and the state without visibility or control.

“By working with the BGC, we can draw on international best practice and ensure policymakers have access to high-quality evidence and experience from well-regulated markets.”

Grainne Hurst, Chief Executive of the Betting and Gaming Council, added: “The BGC is pleased to be working with aPAL at a pivotal moment for gambling reform in Chile. Well-designed regulation is essential to protect players, raise standards and drive out the harmful black market.

“The UK’s regulated market shows how robust licensing, high standards and effective oversight can support safer gambling while allowing a well-regulated industry to thrive. This agreement reflects our commitment to sharing that experience and supporting evidence-based policymaking internationally.”

The Cooperation Agreement will initially run for one year and forms part of the BGC International Committee’s ongoing programme of engagement with global partners.

The post BGC Enters Cooperation Agreement with Chile’s Online Operators’ Group appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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Betting and Gaming Council

Michael Dugher to Step Down as Chair of BGC

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Betting and Gaming Council (BGC) Chair Michael Dugher is to step down after six years at the industry standards body.

Michael, who was the BGC’s founding Chief Executive for more than four years before becoming Chair in April 2024, will leave his position with immediate effect to take up a new role at Brunswick Group, the leading global advisory firm, as Head of its UK Public Affairs Practice. He will continue to work as a freelance business adviser and will remain a Board Member and Director at Nottingham Forest Football Club.

Michael led the BGC from its inception as the new standards body for the regulated industry, bringing together previously separate industry bodies representing land-based casinos, high street bookmakers and online betting, gaming and bingo. He steered the industry through the Government’s Gambling Act Review and the publication of the Gambling White Paper in 2023, which introduced the most extensive legislative and regulatory changes in a generation.

A former Labour MP and Shadow Secretary of State for DCMS, Michael worked closely with the regulator, the Gambling Commission, and other stakeholders to raise standards across the sector. Under his leadership, the BGC introduced and adopted 20 new safer gambling codes containing 100 new standards. A lifelong fan of horseracing, Michael also launched a number of charity initiatives, including the Britannia Stakes charity race at Royal Ascot and the Grand National Charity Bet, which, with thanks to BGC members, has raised more than £6.5 million for a wide range of good causes.

Michael said: “I am immensely proud of everything we have achieved at the BGC. Working with outstanding colleagues and members, we brought the industry together, embraced higher standards in safer gambling and championed an industry that employs tens of thousands of talented, hardworking, decent men and women in communities across almost every part of the UK. We also raised millions of pounds for so many good causes, particularly for racing and armed forces charities that have always been close to my heart.

“In an era when there is sadly so much ignorance and snobbery about betting – not helped, in my view, by the decline in the number of working-class people in Parliament – the BGC did a difficult job in navigating the industry through the previous Government’s gambling review. This resulted in a White Paper that, though not without its challenges, avoided many of the most draconian and disproportionate measures advocated by anti-gambling prohibitionists.

“By embracing change and positively engaging with Government and Parliamentarians, we made the case for an evidence-led approach to regulation and legislation that raised standards, protected jobs and growth as much as possible, and delivered historic deregulation and investment for Britain’s world-leading casino sector – all while keeping customers safe in the regulated industry. This approach is increasingly at risk today given the very worrying growth in harmful gambling in the unregulated online black market.

“I would like to thank all the BGC members and staff who supported me over the years, especially the BGC’s superb Chief Executive, Grainne Hurst. I would also like to pay tribute to the many ministers, shadow ministers and officials at DCMS whom I was privileged to work with. I wish the industry, and the sports that rely on its funding, not least British horseracing, all the very best for the future.”

BGC Chief Executive Grainne Hurst said: “Michael’s contribution to the Betting and Gaming Council over the past six years has been exceptional. From the outset, he brought clarity of purpose, a trusted standing with policymakers and regulators, and a steadfast commitment to championing a responsible, well-regulated betting and gaming industry.

“Under his leadership, the BGC was firmly established as a credible standards body, uniting a diverse membership around stronger consumer protections and a shared determination to do the right thing, often going beyond regulatory requirements.

“He guided the industry through the most significant regulatory reform in a generation, helping to deliver the Gambling White Paper and shape its implementation in a way that balances consumer protection with the realities of a major UK leisure industry enjoyed safely by millions each month. His leadership was also pivotal in securing long-overdue casino modernisation and proportionate regulation.

“On a personal note, it has been a genuine privilege to work alongside Michael. He leaves a proud and lasting legacy at the BGC, having strengthened standards, unified the industry and ensured it is well prepared for the challenges ahead.”

Ian Proctor, Chairman of Flutter UK & Ireland, said: “Michael worked tirelessly to help establish the BGC as a strong and authoritative body for the regulated industry. During a period of significant policy change, his experience and judgement were invaluable in supporting constructive engagement with Government and the regulator, including through the Gambling Act Review and the delivery of the White Paper.

“I would like to thank Michael for all his hard work and, on behalf of the wider industry, wish him every success in the future.”

The post Michael Dugher to Step Down as Chair of BGC appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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