The UK gambling industry invested an enormous £2 billion in advertising and marketing last year, according to new estimates that have intensified pressure on the government to increase taxes on the sector.
Advertising Spend Versus Tax Revenue
This astronomic figure, calculated by leading media insights group WARC, significantly exceeds the £1.2 billion that the Treasury collected from online casino companies during the same period. The advertising expenditure included print and digital promotions, alongside affiliate programmes where third parties receive payments for directing gamblers to specific operators.
Industry sources suggest the actual advertising spend could be hundreds of millions higher due to difficulties in accurately tracking digital marketing investments. This means the true total might approach or even surpass the £2.5 billion raised through the three main gambling duties, which also include taxes on slot machines and sports bets.
Political Pressure for Tax Increases
Chancellor Rachel Reeves faces mounting pressure from thinktanks, MPs, and former Prime Minister Gordon Brown to raise these duties in Wednesday's budget. The move would help bolster Britain's strained public finances.
Meg Hillier, chair of the influential Treasury select committee, stated that the industry's substantial advertising expenditure undermines lobbyists' claims that tax increases could have devastating consequences. "During our session with the BGC, we were warned that any increase in gambling taxation could lead to 40,000 job losses," Hillier said. "It's important that the government does not cave into this industry scaremongering."
Labour MP Alex Ballinger, who campaigns for tougher gambling regulation, described the £2 billion figure as "astronomic" and suggested companies should reduce advertising before resisting "fair taxes on their vast profits."
Industry Response and Black Market Concerns
The Betting and Gaming Council (BGC) strongly disputes WARC's estimate, claiming advertising spend is closer to £1 billion and has actually declined in recent years. A BGC spokesperson highlighted that 20% of all broadcast and digital advertising is dedicated to safer gambling messaging.
Industry analyst Alun Bowden of Eilers & Krejcik Gaming warned that reducing advertising spend could have unintended consequences, potentially helping illicit operators gain foothold in the UK market. "If you reduce advertising spend significantly then you give more parity to black market operators," he explained.
James McDonald of WARC noted that gambling has become "a significant force in the advertising market," spending more than established sectors like automotive and cosmetics, with social media platforms forming a core part of their marketing strategy.
As the budget decision approaches, the debate continues between those advocating for higher taxation to address gambling harms and those warning of potential market shifts toward unregulated operators.
