A recent poll indicates growing concern among UK gamblers that tax increases on betting could prompt many consumers to shift their activity to unregulated, illegal platforms, with potential implications for player safety, regulated operators and the wider gambling market.
According to a survey published on 25 February 2026, more than half of regular bettors believe that recent duty rises on regulated betting and gaming, introduced in last year’s Budget, could push punters toward black-market sites where there are fewer protections and no oversight by UK authorities.
Punters and Tax Pain
The poll, cited in media coverage of the findings, showed that 52 per cent of gamblers surveyed feared that the government’s tax increases on online casino games and sports betting (excluding horse racing) would encourage players to seek out unregulated operators. A further 66 per cent said that higher taxes had made betting less enjoyable overall.
Chancellor Rachel Reeves’s tax reforms, outlined in the Autumn 2025 Budget, are designed to raise an additional £1.1 billion annually by 2030 through increased duties on regulated betting and gaming. Supporters in government argue the additional revenue will help fund public services and create a fairer, modernised tax system. The Treasury has defended the measures as necessary for sustainable public finances.
Industry Fears Over Black Market Growth
Industry representatives have warned that because black-market platforms operate outside UK regulation, they offer no consumer protections and undermine responsible gambling safeguards.
Gráinne Hurst, chief executive of the Betting and Gaming Council (BGC), said higher taxes on regulated operators would not reduce demand but would make illegal alternatives more attractive, particularly as black-market sites avoid tax burdens and regulatory costs. She emphasised that illegal platforms do not contribute to British sport or support jobs.
The regulated gambling sector currently supports more than 100,000 jobs and contributes approximately £6.8 billion annually to the UK economy, according to industry figures. The sector also plays a significant role in funding sports such as horseracing via sponsorships and levy payments.
Policy Debate Intensifies
While regulators and consumer advocates focus on safer gambling protections under the UK Gambling Commission’s framework, some politicians and industry stakeholders argue that tax policy must balance revenue goals with maintaining a competitive regulated market.
In parallel developments, the UK government is moving to tighten restrictions on unlicensed operators, including plans to limit sponsorship visibility of offshore gambling companies in English football, amid broader efforts to curb black-market influence.
Consumer Protection Risks
Critics of high tax rates caution that as players gravitate toward unregulated sites, they may face greater risk of harm due to the absence of established protections such as age verification, anti-money-laundering checks, and responsible gambling tools.
The tension between raising tax revenue and preserving a robust, regulated gambling market is now a focal point of debate among policymakers, operators and consumer groups. With these concerns gaining prominence, the government’s approach to gambling taxation is likely to remain under scrutiny throughout 2026.
