In london, as of october 2025, bookmakers are confronting significant financial strain amid proposed tax increases that could total £3.2 billion across the UK. This fiscal pressure arises alongside reports indicating that illegal betting platforms now capture over 70% of the european market, jeopardizing the sustainability of licensed operators and raising issues around consumer safety.
Fred Done, CEO of betfred, has expressed sharp concerns about the upcoming tax changes, warning they represent “a potential death blow to our physical betting shops.” Speaking during a recent industry briefing, Done highlighted the threat to both employment in retail outlets and the broader racing sector, as higher operating costs might drive punters to unregulated, less secure online sites.
Under the current regulatory framework governed by the uk gambling commission (ukgc) and aligned with eu directive 2007/64/ec, licensed bookmakers must pay wagering duties and contribute to levies that fund problem gambling initiatives and public services. The proposed tax hikes risk breaching principles of fair competition and market integrity by disproportionately impacting licensed businesses, potentially encouraging market displacement rather than compliance.
Should these tax measures proceed, experts anticipate extensive closures of retail betting shops, resulting in significant job losses and reduced formal tax revenues. The shift toward black market operators complicates enforcement efforts for regulators and poses risks to consumer protection. Industry representatives have urged policymakers to reevaluate the scale and implementation timing of the tax increases to maintain market equilibrium and safeguard both jobs and public funds.
The future of europe’s betting sector stands at a crucial crossroads: will licensed operators adapt and survive the fiscal tightening, or will the growth of unregulated markets deepen, undermining the stability and oversight of the gaming industry?
