A PwC report, commissioned and published by the Betting and Gaming Council (BGC), has estimated that around 5% of all online betting and gaming in the UK takes place on the black market. 

The report, entitled ‘Impact of the taxation and regulatory environment on European online betting and gaming markets’, suggested the figure has increased since 2021, when the black market accounted for 3.3% of the UK’s total gambling spend. 

The BGC claimed the research “draws clear links between restrictive policy regimes across Europe and black-market growth”. 

PwC also used other European jurisdictions as points of comparison to show the correlation between high tax rates and black market growth.  

The report, the BGC said, noted 57% of betting takes place with unlicensed operators in Frace, with the figure being 35% for Sweden and 37% for the Netherlands.  

France’s tax rate for online gambling currently stands at 59.3% of gross gambling revenue (GGR), while Sweden’s rate sits at 22% of GGR.

In the Netherlands, the tax rate increased to 34.2% of GGR in January 2025, with a further hike to 37.8% coming into force in 2026.  The Dutch gambling market saw a 16% decrease in GGR in H1 2025.

Denmark has a tax rate of 28% of GGR for online casinos and sports betting, while Spain’s rate is 20%. 

PwC’s research also estimated that between 2019 and 2024, countries with tax rates below 25% of gross gaming revenue saw annual growth in tax receipts of 13%, as opposed to 9% in jurisdictions with higher-tax rates. 

Chancellor Rachel Reeves is set to announce the Autumn Budget on 26 November, with tax increases for the gambling industry expected to be on the agenda.

Earlier this year, the UK government concluded its consultation into the prospect of introducing a Remote Betting and Gaming Duty (RBGD). 

The RBGD would look to unify tax rates across pool betting, general betting and online casino for UK operators.  

Under the current system, pool and general betting are taxed at 15%, with online casino subject to a 21% tax rate. 

The BGC has vociferously opposed any such tax increases, claiming they would be detrimental to British horseracing, and UK gambling as a whole by driving players towards the black market.

BGC CEO Grainne Hurst said: “Britain has one of the safest gambling markets in Europe but if the Treasury isn’t careful, we could quickly end up like France or Sweden, with huge black markets contributing nothing in tax, offering zero player protection, and providing no funding for sport or the economy. 

“Well-balanced regulation and fair taxes protect players, raise more revenue for the Treasury, and support thousands of jobs. Unlicensed operators do none of those things.” 

Last week, the Gambling Commission claimed it was “not yet in a position” to correctly estimate the size of the UK’s black market, in the final installment in a series of reports into Britain’s unregulated sector.  

The report urged caution around taking estimates on black market sizes from third-party sources.

The post BGC issues further tax hike warnings ahead of Autumn Budget first appeared on EGR Intel.