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PwC Flags Rising UK Online Black Market as Budget Nears

The findings question steep duty hikes by tying heavier taxes to smaller regulated markets.

Overview

  • PwC estimates about 6% of UK online betting and gaming now occurs on unlicensed sites, with channelisation down to 94% from 99% in 2020.
  • Cross-country comparisons show lower channelisation in more restrictive regimes, including France at 43%, Sweden at 65% and the Netherlands at 63%, versus 89% in Spain and Denmark.
  • Between 2019 and 2024, jurisdictions with effective tax rates below 25% saw gambling tax receipts grow 13% annually, compared with 9% in higher-tax markets.
  • The Betting and Gaming Council cited the report in warning the Treasury that higher duties and tighter rules risk expanding the black market and weakening consumer protections.
  • The analysis lands ahead of Chancellor Rachel Reeves’s 26 November budget, after she signalled duty increases and as campaigners press for rates of up to 50%.