The UK gambling companies have spent an “astronomic” £2 billion on advertising and marketing in the past year, according to estimates that have intensified calls for the chancellor to increase taxes on the sector. This expenditure includes a mix of print and digital promotions, as well as affiliate programs where third parties receive payment for directing gamblers to specific operators.
The figure, produced by the leading media insights group WARC, significantly exceeds the £1.2 billion collected by the Treasury last year from online casino companies. Media industry sources suggest that the total gambling advertising spend is likely hundreds of millions higher, as accurately measuring digital marketing expenses is challenging. Thus, the true figure could reach or even exceed the £2.5 billion in revenue raised last year from the three main duties imposed on the industry, which also include taxes on slot machines and sports bets.
Chancellor Rachel Reeves faces increasing pressure from think tanks, MPs, and former Prime Minister Gordon Brown to raise these duties in the upcoming budget meeting on Wednesday, as she works to bolster the struggling public finances.
The Betting and Gaming Council (BGC), an industry group, has lobbied against any tax increases and disputed WARC’s estimate, claiming that industry ad spend is closer to £1 billion, significantly less than a 2018 figure of £1.5 billion from Regulus Partners, a consultancy favored by the gambling sector.
As Reeves considers raising gambling duties, the higher spending estimates fuel calls to disregard industry warnings about the adverse impact such tax increases could have.
Meg Hillier, chair of the influential Treasury select committee, voiced concerns that the industry’s substantial spending undermines its lobbyists’ claims that tax rises could devastate jobs and growth. During a tense committee session, she remarked, “Unfortunately, the fact that we are told the existence of gambling firms is on a financial knife-edge while they simultaneously plough billions into advertising does not come as a surprise.”
Alex Ballinger, a Labour MP advocating for stricter regulations and taxation of gambling companies, called the £2 billion figure “an astronomic sum.” He added, “Perhaps gambling firms should think about cutting back on adverts that nobody wants to see before pushing back against paying fair taxes on their vast profits, particularly given the harms they cause.”
Leading gambling industry analyst Alun Bowden from Eilers & Krejcik Gaming warned that reducing advertising spend could inadvertently benefit illicit operators by allowing them to gain a stronger foothold in the UK market. “Marketing spend is the main way to mitigate costs and would be the first thing to be cut if taxes rise,” he said. “Reducing advertising spend significantly would give an advantage to black market operators who are increasingly investing in SEO, affiliates, and social media.”
James McDonald, director of intelligence at WARC, noted that the gambling sector has become a significant force in the advertising market, outspending traditional industries like automotive and cosmetics in recent years. Although TV advertising remains a major focus, social media platforms are integral to the sector’s marketing strategy.
Will Prochaska, director of the Coalition to End Gambling Ads, said, “One would think that if the sector is asked to pay a bit more tax in the upcoming budget, they could cut back on their ad spend rather than lay off employees in betting shops or further reduce payouts to customers, but that’s a choice for them.”
A BGC spokesperson countered these claims, stating, these assertions are misleading. The betting and gaming industry’s advertising spend, excluding lotteries, is around £1 billion and has actually declined in recent years. Importantly, 20% of all broadcast and digital advertising is dedicated entirely to safer gambling messaging, a voluntary commitment made by the UK industry.
“Further tax rises would push more consumers towards the growing black market, which offers no age checks, no safer gambling tools, and no tax contribution, while undermining advertising spend that supports over 11,000 jobs, contributes £506 million to the UK economy, and provides £138 million annually to British sports through sponsorship.”
