The proposed UK gambling tax rises later this year would likely stunt market growth and push the country’s market into a new era, according to Ted Menmuir.

A rise in remote gaming duty, the tax levied on online gaming operators, from 21% up to 42% has been backed to have large-scale effects across the country. 

Speaking on the latest episode of the iGaming Daily podcast, SBC Media Editor-at-Large Menmuir warned about the effects of such a significant rise, saying the market will be heavily affected. 

He said: “A doubling up from 21% to 42% really puts the brakes on any growth in the UK market, especially for online gambling. 

“42% will be a real bite and it will carry significant consequences – it wipes out pretty much the whole kind of mid-range operators and kills competition at the top level.”

Furthermore, SBC News Editor Ted Orme-Claye, also speaking as part of the podcast, suggested that the market could benefit the biggest players and push out smaller operators. 

“What this would do in the event it was introduced would make Britain look incredibly similar to the situation in Italy, where it’s only really a market for the biggest players.

“It would certainly wipe out more of the SME side of the British betting industry.”

Italy has particularly high taxes compared to other European countries, coupled with stiff compliance and strict rules around marketing.

This has made it a particularly difficult market for smaller companies to stand out in, leaving it dominated by some of the biggest global firms.

The iGaming Daily team predicted that a similar situation could come to play in the UK – the biggest thriving at the top, albeit with a heavy tax burden, while smaller ones shut up shop.

Menmuir then closed on discussing the overall feel of the news, branding it as a very negative time for the industry. 

“In the eyes of leadership, the boards, all key stakeholders, we’re in damage limitation time and hoping for the least worst possible outcome. It’s a very negative time for UK gambling.”