Budget: Odds to be slashed if betting industry taxed higher, Reeves warned
Tax rises for the betting sector in tomorrow’s Budget could leave punters with worse odds across all sports, say industry spokespeople.
Chancellor Rachel Reeves may target so-called “sin taxes” on Wednesday as she looks to fill a fiscal black hole, with the gambling sector expected to be hit.
Reeves could exempt flutters on horse racing following a concerted campaign from the sport’s stakeholders but the Betting and Gaming Council has warned that odds for all sports could worsen should any part of the industry be slapped with tax rises.
“Any increase in tax is going to be a threat to British jobs, to economic growth. It’s going to effectively be a punters tax,” BGC chief executive Grainne Hurst told City PM.
“Customers are going to get worse odds, worse offers as a result of any tax increase, and that’s bad news for customers because they’re going to notice that.
“People are savvy. You would notice if your odds were getting worse, or you were getting less places, or the return to player was reducing.
“The vast majority of people will still like to enjoy a flutter as part of their leisure and entertainment, but they want to get good value from it and they’ll be able to get that elsewhere on the black market.”
Betting industry ‘a great British success story’
The hit on the betting industry is likely to come as part of a fiscal package that could also take in income tax thresholds, changes to pension salary sacrifices, inheritance tax and limited liability partnerships.
And the Institute for Public Policy Research (IPPR) think tank believes a hefty tax on the industry could raise £3.2bn in extra income for the Treasury each year. The industry says it already pays £4bn in tax per year, generating close to £7bn for the wider economy per annum.
“The only real levers open to businesses when they get any tax increases is on odds offers and efficiencies through jobs,” added Hurst, formerly of betting giant Entain.
“We don’t want to dismantle what is a great British business success story. These are businesses that are employing people and creating investment outside of London and providing people with leisure and entertainment.”
The Chancellor is due to deliver her budget at 12:30pm on Wednesday.