With any potential changes to taxation in a nation, there comes a sharp intake of breath from those who might lose out, and a rising chorus from campaigners to ensure their particular stance benefits from any alteration to the current rates applied to the industry.

Gambling is a massive industry in the UK, and betting runs deep in societal norms around watching or following sports. The industry’s Gross Gambling Yield (GGY), according to the Gambling Commission, is £15.1 billion ($19.84 billion).

As part of a recent article, International Coinbase found that the industry employs 58,000 people, according to the Office for National Statistics/CV Maker’s most recent use of Office for National Statistics data.

On one side of the argument are the established entertainment brands that have been adapting to the online gambling boom and the accessibility changes from physical brick-and-mortar stores to the era of mobile devices.

On the other side of the table are political and regulatory bodies seeking changes to gambling tax rates and additional measures that could yield societal benefits and enforce new regulations.

The discussion, along with a raft of campaign actions from groups such as the British Horseracing Authority (BHA), has continued to drive the narrative ahead of the UK Chancellor’s 2025 budget.

What is at stake for gambling in the UK as UK gambling tax reform looms?

As we reported, Ministers from the Treasury Select Committee interviewed a panel comprising medical specialists, former owners of gambling brands, and current regulatory figures.

One of those figures, the current CEO of the Betting and Gaming Council, Grainne Hurst, was questioned on key topics by Dame Meg Hillier MP, chair of the session, and the committee members, including Members of Parliament (MPs) Yuan Yang and John Grady.

Hurst said this can include financial pitfalls, mental health concerns, and ripple effect issues for friends and family who are impacted by the darker side of gambling.

The CEO of the BGC addressed the effect of the industry and the brands, citing that a “small minority” was touched by the perils of gambling harm and addiction.

This stance was questioned by Yang and Grady, with both on the same page that negative connotations can come with gambling, and the industry should pay a higher rate of tax to fund safeguards for gamblers at risk.

“Our CEO, Grainne Hurst, was clear throughout the session that the industry recognises gambling can cause harm and has a role to play in mitigating it. The BGC’s priority remains raising standards, promoting safer gambling, and protecting consumers.” – BGC statement to ReadWrite

“A proper tax on online slots and predatory practices would raise money while also combating problem gambling,” said Yang.

Grady followed suit, saying, “The industry must be regulated and taxed to ensure that individuals are protected and that the online gambling industry pays its fair share.”

The UK Chancellor, Rachael Reeves, also publicly stated the “fair share” message in response to questions from ITV about the upcoming budget.

‘I do think there’s a case for gambling firms to pay more,’ said the chancellor when asked if she would consider increasing the taxes gambling firms pay

‘They should pay their fair share of taxes, and we’ll make sure that that happens’ pic.twitter.com/iNPyki9EVN

— ITVPolitics (@ITVNewsPolitics) September 29, 2025

The BGC says takes social harm seriously

In the wake of the committee meeting, a BGC spokesperson told ReadWrite: “The BGC takes the issue of gambling related harm incredibly seriously.

“Our CEO, Grainne Hurst, was clear throughout the session that the industry recognises gambling can cause harm and has a role to play in mitigating it. The BGC’s priority remains raising standards, promoting safer gambling, and protecting consumers.”

Hurst has now released a statement via the BGC site, looking at the illegal gambling market, saying, “If you want safer gambling, driving punters to the black market isn’t the answer.”

The CEO continued, “I appeared before MPs alongside those calling for a massive tax hike on betting and gaming. The contrast between our positions could not have been more stark.”

That position from the BGC chief shows the widening divide between government policymakers and industry leaders who believe illegal routes will become stronger in the wake of change.

Hurst also refers to those across the table in this conversation as “opponents,” who are arguing for “punitive tax rises of up to 50% on online gaming. They claim it will curb gambling-related harm and raise billions for the Treasury. In reality, it risks achieving the exact opposite.”

Analysis by economic consultants EY warns that higher taxes could put 40,000 jobs at risk, divert £8.4 billion in stakes to the black market and wipe £3.1 billion from the sector’s contribution to the UK economy.https://t.co/nNFbMUckVb pic.twitter.com/SKlLK3Am7v

— Betting and Gaming Council (@BetGameCouncil) November 13, 2025

Hurst cited that the BGC’s stance would be up to 40,000 jobs lost, £3.1 billion ($4.1 billion) wiped from the economy, and as much as £8.4 billion ($11.1 billion) in stakes diverted to the black market if the rumours of a 50% tax increase are made real.

The CEO also mentioned that statistically, “1.5 million Brits stake around £4.3 billion a year with illegal operators.”

Rob Wood, Chief Financial Officer and Deputy CEO of Entain Group, speaking on BGC’s platform, was also cautious about the impact illegal markets could have in a retaliatory or reflexive response to taxation.

“The Netherlands raised its gambling tax to 35% this year. The result? A surge in illegal operators, now accounting for 50% of the market, and falling tax revenue. Once the black market gets a foothold, it’s hard to dislodge. We shouldn’t repeat that mistake,” he said.

As we reported, the Dutch gambling regulator Kansspelautoriteit (Ksa) was vocal around the illegal gambling sector seeing a rise in players as a result of new mechanisms introduced to halt problem gambling.

Conflicting stance from the UK Gambling Commission

In a conflicting report published by the Gambling Commission (GC), the body references a study concluded on November 6, 2025, that explored the impact of the illegal market.

Whilst the four-part approach was exploratory, the GC admitted that their in-depth delve into consumer awareness, drivers and motivations, engagement and trends, and the disruption of illegal online gambling yielded inconclusive figures and results.

Saying, “Reliable data is limited, and assumptions are often required to fill gaps — meaning that confidence in any single estimate is inherently constrained.”

Limited data on any topic means the results are difficult to define, especially with the limited data, as this restrains bodies like the GC from painting a complete picture of the estimated impact of the illegal betting scene in Britain.

The GC’s work also showed that there was no change in the metrics for visits to 1,000 unique illegal sites monitored.

“Our data shows that, by July 2025, estimated visits to illegal gambling websites had returned to broadly similar levels as in July 2024 — in other words, no overall increase was observed.”

Dr Carsten Jung, Interim Associate Director for Economic Policy and AI at the Institute for Public Policy Research (IPPR), was also interviewed by the Treasury Select Committee.

When asked by Yang about why the IPPR believed that gambling in the UK was “under-taxed,” at a rate of 22% Dr Jung responded.

“Gambling is a social harm,” he said. Raising taxation on remote gambling to 50%, increasing the gambling betting duty from 15% to 25%, and taxing other forms of gambling would raise £3.2 billion ($4.2 billion).

“This wouldn’t be a punitive taxation; it would recognize the social harms that gambling exerts on society,” concluded Dr Jung.

Hurst is firm in her position, saying that the British gambling sector is “world-class precisely because it combines entertainment with high standards of consumer protection. We should be proud of that success, not jeopardise it through fantasy economics and punitive taxes.”

A new future for British gambling economics might become a stark reality if the UK Chancellor decides to increase the tax rate. If that does come to pass, shareholders will be bracing for a little less in their pockets as a result of redefined quarterly results, and the UK gambler might be affected by the trickle-down effects.

Regulators, operators, and the average gambler will have to hold their breath just a little longer to find out if the Chancellor doubles down on betting tax levies in her budget in late November.

Featured image: Adobe Firefly

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Small and midsize firms account for $868 billion, or about a third, of yearly US imports, according to the Census Bureau.

While these companies are tiny compared to the likes of Microsoft, Amazon or Lululemon, they still rely on Chinese manufacturing — and they’re far less equipped to handle punishing financial disruptions like this.

Nearly one in five small-to-midsize firms are pessimistic about their chances of survival over the next five years, according to a new report from PYMNTS Intelligence report.

Just under 7% of all firms surveyed — and 13% of those without access to financing — believed they were unlikely to survive the next two years.

The heads of some of these small businesses spoke to The Post about their fears:

Little Tikes

Isaac Larian, chief executive MGA Entertainment, voted for President Trump in November — but lately, he’s not so sure he made the right decision.

“Frankly, I’m getting angry,” the toymaker of Bratz dolls, L.O.L. Surprise and other wildly popular items.

Isaac Larian, CEO of MGA Entertainment, had hoped to expand his toy factory in Ohio — until tariffs hit. REUTERS

In just two weeks, the Los Angeles-based company has paid nearly $10 million in tariffs to import its merchandise to the US from China.

That has crimped plans for MGA’s Little Tikes line of toddler toys — among the few US toy makers that owns a factory here — to expand a factory in Hudson, Ohio that currently employs 700 workers.

Instead, MGA could be laying off some of those workers, Larian told The Post.

“We were going to break ground later this year, but we have to put it on hold,” Larian said.

Meanwhile, Bratz dolls that cost $15 right now will likely cost as much as $30 in time for Christmas. At that rate, the company will lose up to 40% of its sales and 40% of its profit this year, Larian said.

Bratz dolls could spike to $30 by Christmas or twice as much as their current price. MGA Entertainment

The toy industry has been lobbying for an exemption to the 145% tariff on goods made in China and sees the carve out for tech companies over the weekend as unfair, he added.

“Big companies like Apple have the money and clout to get Mr. Trump’s ear,” Larian said.

Wonderstate Coffee

Before the tariff wars, Wonderstate Coffee was on track to grow 15% this year. The java distributor was also getting ready to invest $300,000 in new packaging equipment and open its fourth cafe, in Madison, Wis.

Now, the company, which supplies supermarkets and restaurants across the Midwest, is talking to bankers to expand a line of credit so it can pay an extra $20,000 in tariffs on a shipment of choice beans coming from Ethiopia.

“We have a fear that we’ll be in a cash crunch,” Wonderstate TJ Semanchin told The Post. “You start to question whether it’s the time to invest in growth.”

Wonderstate Coffee is scrambling to borrow money to pay for the tariffs on the coffee it imports. Wonderstate Coffee

While Semanchin is not planning to lay off employees, he said he may have to slash an employee profit-sharing program.

The 90-day pause on reciprocal tariffs last week didn’t spare the importer, which is still stuck paying an extra 10% for everything it brings in from coffee producers overseas.

“A 10% increase on all of our costs is still a massive disturbance for us,” Semanchin said. “These swings of tens of thousands of dollars from day to day are making us less hopeful. It’s sinking in on how it will hit our actual costs.”

On top of the $20,000 in tariffs, Wonderstate will have to pay approximately $4,000 in interest to borrow the money for the duties, Semanchin said.

Tarptent

Tarptent Inc. — a Nevada City, Calif.-based company that makes lightweight tents and other outdoor and camping gear — relies on three manufacturing facilities. One is in Hong Kong, another is in Vietnam and a third is in mainland China.

“As of today, because of tariff rates, we have had to suspend all operations” at the Hong Kong factory, Tarptent President Harry Shires told The Post. “I don’t know where we’re going next.”

With the recent increase in the tariff rate to 37.5% from 7.5%, Shires said that the company recently had to pay more than $51,000 in levies — up from around $10,000 that he would have paid previously.

Tarpent makes its lightweight tents in China and Vietnam. Tarptent

The company generates around $2.5 million per year, he added. If there is no change on the tariff front, that number will drop to under $1 million, Shires said.

Shires told The Post that the company currently has enough inventory to sell through the summer, but “we won’t have enough stock to stay open” going into the fall if the tariffs remain in place.

At that point, Tarptent will “either shut down or severely redefine what it is we support in the industry,” Shires said.

Vikre Distilling

Vikre Distilling is waiting to hear back from vendors that supply it with everything from corks, labels and bottles.

The Duluth, Minn., distiller has been making vodka, gin and whiskey for the past decade and struggled to raise prices during the height of inflation over the past couple of years.

“We saw a huge drop in sales,” said owner Emily Vikre, noting that bar, restaurant and retail customers alike have drastically cut back on orders.

Vikre Distilling’s retail customers pulled back dramatically on their orders this year, owner Emily Vikre said. Facebook/Emily Vikre

“Since the start of this year, we have seen a pullback because consumers are being more conservative about their spending,” Vikre told The Post. “But now our retail customers have stopped ordering. They are worried about being stuck with a bunch of inventory.”

Vikre is bracing for vendors to hike prices again because of the tariffs. Her label maker, for example, relies on imports from China to make their labels adhere to the glass bottles.

If the price hikes are unmanageable, Vikre is considering returning some of her warehouse and retail space to her landlord.

Vikre Distilling is worried about its costs going up at a time when it’s difficult to charge more for its products. Vikre Distillery

Out There Outfitters

Sarah McDonald, co-owner of apparel store Out There Outfitters in Wayne, Pa., told The Post that she’s concerned she may need to lay off some of the 15 people she employs.

“Honestly when the tariffs were announced I felt like basically every small business in America was told they will probably have to go out of business,” McDonald said.

She added that the tariffs will likely mean higher prices, which will be passed on to the consumer.

Adding to the uncertainty is whether the tariffs will be implemented, at what rate and when, she said.

“It was so extreme how high the tariffs were,” McDonald said, adding: “Things have changed, numbers are changing, dates are changing.”

Kamhi World

“I understand the rationale behind the tariffs. There’s been an imbalance,” said Jay Kamhi, founder of Clearwater, Fla.-based Kamhi World, which sells the Mr. Predictor fortune-telling toy.

The Amazon seller, which exclusively imports all of its custom toys from a facility in China, has temporarily halted all overseas manufacturing. That’s because the tariffs could send the cost of his fall and holiday deliveries, currently pegged at about $1 million, to as much as $1.5 million.

Kamhi Toys founder Jay Kamhi is exploring moving production out of China, but says other factories are filling up. Kamhi World

“If we have to pay $1.5 million in penalties, or tariffs . . . we make no profit. We lose money. It’s not sustainable by any stretch of the imagination, and we’ve got nowhere to go,” Kamhi told The Post.

The company is looking into a production shift to Vietnam or Mexico, but “you got these big, expensive molds that are sitting in China, and you’ve got to find a way to transport them. You’ve got to find a factory that will do it. A lot of factories, for Vietnam, for example, we’re told, ‘We don’t have space for you. Every person is trying to come to our factory right now. We don’t have room for you.’ ”

Kamhi said he’s looked into US manufacturing in the past and would love to do it — but the specialized molds and electronics that go into his toys are only available overseas. Even if there was capacity at US facilities, it would cost about 10 times more, he said.

Layoffs are not an option for Kamhi. The head of marketing at Kamhi World is engaged to Kamhi’s daughter; his operations employee is married to his other daughter. The company’s executive director — whose father is good friends with Kamhi — has been with Kamhi World for 15 years.

“Each one of these people – their families depend on this company doing well,” Kamhi told The Post. “Literally overnight all these people now are terrified that they’re not gonna have money to support their families. My daughter called me up two weeks ago crying, going, ‘Dad, how are we going to get through this?’ ”

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