Alex Ballinger, MP for Halesowen and a consistent advocate for greater taxation and regulation of the gambling industry, implied the industry should reset its priorities as stakeholders continue to raise warnings over the potential implications of tax rises.
The accusations come after figures were published by The Guardian, which estimated gambling companies, including the lottery, spent £2bn on marketing in 2024.
“Perhaps gambling firms should think about cutting back on adverts that nobody wants to see before pushing back against paying fair taxes on their vast profits, particularly given the harms they cause,” Ballinger said, as he described the £2bn figure as an “astronomic sum”.
Ballinger was among the 101 Labour MPs who signed a letter in September urging Chancellor Rachel Reeves to take a “polluter pays” approach to taxing online gaming, arguing that the sector faces a lighter financial burden compared to markets such as the Netherlands and Austria.
The group joined think tanks, opposition parties and the former MP Gordon Brown in piling pressure on Reeves to target gambling ahead of the UK budget.
In response, industry leaders have warned of significant consequences if the sector’s financial burden is increased as part of Wednesday’s (26 November) budget, including the prospect of job losses, venue closures and a reduction in investment within the UK sector.
BGC battles back
Chief among those battling on the gambling industry’s behalf has been the Betting and Gaming Council (BGC).
The industry body has refuted The Guardian’s report, claiming that the true figure sits closer to £1bn and has declined in recent years, while also warning that “undermining” advertising spend by regulated operators plays directly into the hands of the UK’s black market.
“20% of all broadcast and digital advertising is dedicated entirely to safer gambling messaging, a voluntary commitment made by the UK industry,” a BGC spokesperson said.
“Further tax rises would simply drive more consumers towards the growing black market that offers no age checks, no safer gambling tools and no tax contribution, while undermining advertising spend that differentiates the regulated market.”
Fears over black market advertising are not unfounded. A Reuters report published last month raised major concerns over the extent of fraudulent ads across Meta’s platforms, including for online casinos.
According to the report, the tech giant projected that 10% of its overall annual revenue for 2024 – roughly $16bn – came from running ads for scams and banned goods.
These concerns were also echoed by Eilers & Krejcik’s industry analyst, Alun Bowden, who questioned how people will navigate the “almost invisible” barriers to the black market.
A recent study from the UKGC revealed that only a minority of players are aware that they have strayed into the illegal market.
“In a world where one site can look much like another on the surface, and the differences are in the nuances underneath, then how do you stand out?” said Bowden.
“If you reduce advertising spend significantly, then you give more parity to black market operators who are increasingly spending more on SEO, affiliates, streamers and social media.”
