UK licensed betting operators are cutting advertising budgets as higher taxes and weak economic conditions squeeze margins, prompting warnings from the Betting and Gaming Council (BGC) that the impact will extend beyond gambling.

Major groups including Entain, Flutter Entertainment and Evoke, have indicated marketing reductions of around 20%, signalling a reset in customer acquisition strategy across the sector.

The issue was analysed on the latest iGaming Daily podcast, where host Charlie Horner was joined by SBC’s Editor-at-Large, Ted Menmuir, and Ted Orme-Claye, Editor at SBC News.

In the episode, the trio reviewed new BGC research arguing that tax changes due in April are accelerating an existing shift away from broad-reach advertising and towards channels that deliver measurable returns.

Menmuir said marketing budgets were already under pressure, but higher tax liabilities have forced operators to prioritise short-term efficiency over brand-building.

“With the tax element coming into play, it accelerates the transformation,” Menmuir noted. “Operators want marketing spend fully tracked and justified, with a clear line to return.”

According to the BGC, the retrenchment risks undermining the sector’s wider economic contribution. The council estimates betting advertising and sponsorship generate £506m in gross value added and support nearly 9,900 jobs.

A sustained reduction in spend would hit sports bodies and media suppliers, with lower-league football clubs identified as particularly exposed to sponsorship withdrawals.

The decline is most visible in television advertising, which operators increasingly view as high-cost and inefficient. Digital and social platforms are favoured for their targeting, flexibility and compliance oversight, allowing operators to manage exposure while protecting margins.

The three also warned of unintended consequences. Reduced visibility for licensed brands may create opportunities for illegal operators, particularly offshore and crypto-led casinos.

Menmuir argued that limits on regulated advertising leave “open space” for unlicensed firms using influencers, aggressive bonuses and “non-Gamstop” positioning to reach UK consumers without safeguards.

The discussion concluded that while the BGC’s data highlights the scale of the issue, reports alone are unlikely to shift policy. With the Labour government under pressure to raise revenue, the trio suggested the industry will need more direct engagement to prevent further tax or advertising constraints.