BGC urges Government to support growth
“If we want firms to keep investing and employing people here in the UK, we desperately need stability – and not more self-defeating tax rises that can only threaten jobs and growth.” – Grainne Hurst, CEO, Betting & Gaming Council
BGC’s Hurst probes Government thinking
In response to the Government’s surprise announcement of 0.7% economic growth in Q1 2025, Grainne Hurst, CEO of the Betting & Gaming Council (BGC) delivered something of a cross between plea and measured broadside to Chancellor Rachel Reeves, PM Keir Starmer et al.
Hurst’s statement, published on the BGC website on 6 June questions the Government's seemingly inconsistent approach to supporting different industry sectors, while also urging support for gambling – an industry in very rude health, and growing.
Contradictions
Hurst: “There are undoubtedly inherent contradictions at the heart of government policy. Ministers say they are pro-business, yet continue to add costs. They talk of ‘light-touch’ regulation, while increasing regulatory burdens – from football to gambling. If the Government is serious about growth, it must ensure rhetoric is matched by action.”
It is indeed a contradictory message emanating from Whitehall. What increased regulation would football, one of our most successful industries and attractive exports, benefit from? And the gambling sector – a major contributor to the HMRC coffers, employer of well over 100,000 people in this country and growing year on year... support to facilitate growth is what's needed, not more financial and administrative burden.
Already up against it
The levy, financial risk assessments and stake limits already represent, in short time, a financial triple whammy for the sector. The Gambling Commission would say all 3 initiatives are vital to the health of the industry. The jury, though, is still very much out when it comes to financial assessments and stake limits. Both act as a barrier to many players while also inadvertently driving some players to unlicensed gambling sites.
Hurst: “The Treasury’s recent proposal for a new, potentially higher single tax on online betting and gaming comes at the worst possible time. Such a move would risk driving away investment … and pushing customers toward the unsafe, unregulated, and growing black market. Unlike the regulated sector, black market operators offer no consumer protections and pay no tax – meaning a higher tax rate could ultimately reduce, rather than increase, revenue to the Exchequer.”
Snobbery, £s and jobs
Hurst acknowledges that gambling isn’t for everyone, and that much of the negative feeling is rooted in snobbery. But it’s an important industry on a number of levels.
“It is a pastime enjoyed by around 22.5 million adults each month. Perhaps more prescient for the Treasury is the fact that highly regulated betting and gaming businesses contribute £6.8 billion to the economy, generate £4 billion in tax, and support 109,000 jobs.” Said Hurst.
And it should be noted that the 109,000 jobs are with businesses who are BGC members. Some estimates add another 10-15,000 UK-based jobs to that total.
Hurst: “Despite this success and the obvious popularity of betting and gaming, this sector still draws scorn from some MPs and select quarters of the media. Often, that’s driven by a lack of understanding. Roughly half of all adults enjoy a bet each month, but I suspect that, unlike their constituents, half of all MPs won’t have a bet. The irony is our parliamentary representatives are probably pretty unrepresentative in this respect.”
That last sentence seems applicable to the Government’s stance on a range of topics currently concerning the wider British public.
Where from here?
We wait and see. The gambling sector has taken on significant additional costs (estimated at £1bn annually), largely through the implementation of recommendations in the 2023 White Paper. A tax rise now would, no doubt, be damaging to the industry – though how significant is open to conjecture. The Government needs to consider an extended version of ‘the sleep test’. Before launching into another major industry change, the Government needs to pause and let things – the levy, affordability checks, stake limits – settle down a bit and see how things pan out.
Wise head
Not even a year into her role and Grainne Hurst is coming across as a rational, ‘wise head’. She clearly wants the industry she largely oversees to contribute to a recovering British economy. And knows it can.
She’s rational enough to know that the industry faces opposition – a mix of the conservative and cautious lobby and the often emotion-driven irrational. Rachel Reeves and this Government would do well to listen. For once.
You can read Grainne Hurst's statement in full here.