UK gambling industry attempts to schmooze ministers ahead of potential tax rise

UK gambling industry lobbyists are organizing meetings and events to schmooze ministers ahead of a feared tax rise.

Despite warnings that the predicted tax hike could push as much as 28% of current British gamblers into the black market, the Treasury continues to evaluate its plans to simplify the various tax rates on gambling products. If it goes through, the measure would increase the gambling industry’s overall paid tax significantly.

In a push to stop the plan in its tracks, the Guardian reports that gambling lobbyists are meeting with ministers and even planning social events like a darts evening with Labour special advisers and MP staff to try and stop the tax hike in its tracks.

The Betting & Gaming Council (BGC) has made its objections to the potential tax increase clear, highlighting that not only would it stifle growth, but it would also not reduce gambling activity, but rather only push it underground. The BGC’s members include bookmakers and online casinos and has delivered its findings to the Treasury in a recent report.

Now, in emails sent to its members and seen by the Guardian, the trade body is encouraging its members to lobby politicians, with at least one instance of a darts social event being shared directly with Labour staff via the Labour Staff Network (LSN). The event was jointly hosted by BGC and Flutter plc, the owner of Paddy Power, Betfair and SkyBet, with its description promising to “continue building constructive engagement across Westminster”.

“The Labour staffers event was a great opportunity for us to talk about our ‘Big 180’ partnership with Prostate Cancer UK – built around the World Darts Championship – which has so far encouraged 350,000 men to check out their risk of developing the disease,” said a spokesperson for Flutter.

In further emails, the BGC’s chair, the former Labour MP Michael Dugher, claimed to have met with Katie Martin, the chief of staff to Chancellor Rachel Reeves and was also reportedly “in touch” directly with the chancellor herself. However, the paper reports that a source close to Reeves said no formal meeting with the BGC had taken place.

Readwrite has contacted Reeves’ office for comment.

“It is entirely common and appropriate for trade bodies like the BGC to routinely meet with ministers, shadow ministers and MPs as well as officials and advisers across government,” said a BGC spokesperson. “All donations and hospitality are consistent with the parliamentary and other rules and are fully declared and transparent.

“Ministers have been clear in public and in parliament that they would be meeting with the relevant stakeholders as part of the consultation on tax harmonisation proposals. That includes the BGC, which represents companies employing over 100,000 people and a sector enjoyed safely by millions of customers each month.”

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