A BUDGET tax raid on betting would threaten 40,000 jobs and cost the economy £3billion, analysis suggests.
It would also push £8.4billion in stakes to black markets, it is feared.
The warning is from the Betting and Gaming Council, whose members contribute £6.8billion to the economy, pay £4billion in tax and support 109,000 jobs, many in tech.
Bookies pay tax on gross gambling yield — takings minus customer winnings — at 21 per cent for online games, 15 per cent for sports, and 20 for machine gaming.
Think tanks say that increasing, even doubling, these rates could generate billions more.
But analysis for the BGC by EY, formerly Ernst & Young, found tax rises would hammer the sector, with betting shops, casinos and bingo halls closing.
The economy would suffer as jobs are lost and National Insurance contributions take a hit, leaving a net gain to the Treasury of just £500million.
BGC CEO Grainne Hurst said: “It is now clear these further tax rises are a direct threat to British jobs and economic growth.
“The figures speak for themselves – tens of thousands of jobs lost, billions diverted to the black market, and a possible £3billion hit to the economy.
“Tax raids like those proposed would mean fewer betting shops, casinos and bingo halls, fewer jobs and a huge boost to the growing, unsafe gambling black market, while not raising anywhere near the tax claimed.”
She added: “Balanced regulations and a stable tax regime guarantee a growing regulated sector.
“But these proposals would achieve the absolute opposite of that and undermine the very consumer protections that keep people safe by pushing customers towards the unregulated black market, where there are no safeguards, no tax receipts, no jobs, and no support for the sports we all love.
“Britain’s betting and gaming sector is a world leader – employing thousands, paying billions in tax, and investing in British sport.
“The choice is clear: back a successful, sustainable, regulated British industry – or risk losing jobs, investment and growth.”
The BGC will appear before the Treasury Select Committee tomorrow to argue its case.
