As Britain’s Remote Gambling Duty rate increases by 90 per cent today, the Betting and Gaming Council is sounding the alarm about the rise in illegal gambling.

From today (1 April), Britain’s Remote Gambling Duty increases from 21 per cent to 40 per cent of gross gaming revenue, as announced in Chancellor Rachel Reeves’ Autumn Budget.

The increased tax rate will make the online games offered by Britain’s licensed gambling operators less attractive compared to unlicensed offshore websites, which pay no taxes and are not subject to the same player protection rules.

UK industry body the Betting and Gaming Council (BGC) warned on Wednesday that billions are being staked on the black market.

“While April Fool’s Day is synonymous with pranks and jokes, the scale of Britain’s growing gambling black market is no laughing matter,” said the BGC, adding that further tax increases which drive up costs for regulated firms will only accelerate the shift to the black market.

The industry body also criticised the government’s proposed financial risk assessments, which are expected to accelerate the growth of the black market by requiring customers of licensed operators to submit sensitive financial documents to justify their gambling spend.

“This is not a future threat, it is already happening,” said BGC chief executive Grainne Hurst. “Billions of pounds are being staked with harmful illegal operators and the black market is growing fast. 

“Following the Chancellor’s Budget, the black market is continuing to grow. Rising taxes on the regulated sector are making it harder for licensed operators to compete, while illegal sites continue to offer better odds and bigger incentives because they pay no tax and follow no rules.

“At the same time, there is a real danger that measures like Financial Risk Assessments make matters worse. Ministers promised frictionless checks, but trials have already raised serious questions about whether they will work as intended,” Hurst added. “If punters are forced to hand over bank statements and other sensitive financial documents, many will simply walk away from the regulated market altogether.”

Britain’s regulated betting and gaming industry supports 109,000 jobs, contributes £6.8 billion to the economy and generates £4 billion in tax.