Rachel Reeves has been warned to halt plans for tax hikes on bookies after research revealed illegal sites took over 70 per cent of Europe’s betting and casino sales in 2024.
Data published by Yield Sec suggests that black market bookies and casino operators raked in £69.7bn across the 27 European Union countries in 2024.
While that number will be lower in the United Kingdom, plans by No11 to increase the levy on bookies in line with online casinos could thrust punters towards black market bookies.
It is estimated that 1.5m Brits are using the black market, staking over £4bn annually on various sports offerings.
Betting and Gaming Council chief Grainne Hurst, told City AM that tax rises “on the UK’s regulated betting and gaming sector will only fuel the growth of the unsafe black market here”.
“This worrying research underlines the very real threat posed by the growing, unsafe gambling black market,” she added.
“These illegal operators don’t have any protections or standards on safer gambling, don’t support sports and don’t return a penny to the Treasury.
“Balanced regulations and stable taxation is the best way to safeguard consumers, secure jobs, and ensure betting and gaming continues to be a responsible, growing sector.”
Tax to push fans to black market
Mooted Government plans would see taxes on bookies hiked from 15 per cent to 21 per cent, something industry figures have warned against.
Many fear the changes could impact sports such as horseracing, which are intertwined with the world of betting.
But a congested sporting calendar in 2024 – including the European Championships and the Olympic Games in Paris – gave the black market an opportunity to cash in.
“Crime is going to continue to thrive in the absence of monitoring, policing, enforcement and optimisation,” Yield Sec founder Ismail Vali said. “It is up to legal stakeholders to learn to work together.”