EY Report Raises Alarm Over Impact of Higher UK Gambling Taxes

A newly published study by leading auditors Ernst & Young warns that proposed increases to UK gambling taxes could carry significant economic consequences for the regulated gaming sector, according to data commissioned by the Betting and Gaming Council (BGC). 

Key Findings

The EY modelling looks at multiple scenarios in advance of the UK Treasury’s consultation on aligning online betting and gaming duty (RGD) with other levies such as General Betting Duty (GBD) and Machine Gaming Duty (MGD).  Under a scenario that increases GBD from 15% to 21% to align with RGD, EY estimates:

• Additional annual tax revenue of approximately £250 million for the Exchequer. 
• A projected drop in gross value added (GVA) of around £240 million, and the loss of between 2,800 and 4,700 jobs across the sector and its supply chain. 
• A predicted increase in black-market gambling stakes of between £400 million and £1.2 billion, as higher tax burdens reduce consumer value in the regulated sector. 

More extreme proposals, such as tax rates of 25% for betting and 50% for online gaming (as advocated by some policy think-tanks), could lead to even more severe impacts — EY suggests losses in economic value could approach £3 billion under the highest tax model. 

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30 October 2025

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