Two-thirds of gamblers would turn to black market betting sites if the Government increased tax rate on horses
TWO thirds of punters say a tax increase on betting such as horse racing will push people to the gambling black market, a shock survey finds.
A major change to the way betting and gaming is taxed online is being consulted on by Ministers triggering fears a flutter on racing and football will be more expensive.
Sporting betting and online gaming are currently taxed at differing rates but the sector is warning against introducing a single new tax at a higher rate.
The survey from the Betting and Gaming Council found that 65 per cent of regular punters would head to unregulated sites where no tax is paid.
It comes after a recent study found 1.5 million Brits wager more than £4 billion on the betting black market every year hitting the fragile horse racing industry.
The Treasury insist plans are about cutting back on bureaucracy rather than hiking or lowering tax rates.
Grainne Hurst, the boss of the Betting and Gaming Council, said: 'This shocking statistic proves what's at stake if the Government forces through a self-defeating tax hike on ordinary punters.
'It's clear it will not raise more tax, it simply risks forcing huge numbers of customers out of the regulated market, with its world leading standards on player safety, into the arms of the growing, illegal, unregulated and unsafe gambling black market online.
'Any tax rises would make a mockery of the Government's growth strategy and be catastrophic for horseracing, which is already facing a bleak financial outlook.
'This is a wake up call for Government, punters have been loud and clear, hit them with further taxes and they will walk away from sports like racing, straight to the black market, triggering a spiral of decline.'
Currently, there is a distinction between general betting which is taxed at 15 per cent and remote gaming which has grown hugely in recent years which is taxed at 21 per cent.
Ministers are looking at bringing in a new single remote gambling tax with industry figures fearing it could be at the higher rate.
A Treasury spokesperson said: 'We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy - it is not about increasing or decreasing rates.
'During this consultation we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.'
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