A BUDGET tax raid on betting would threaten 40,000 jobs and cost the economy £3 billion, analysis from EY suggests.

It would also push £8.4billion in stakes to black markets. Bookies pay tax on gross gambling yield — takings minus customer winnings — at 21 per cent for online games, 15 per cent for sports, and 20 for machine gaming. 

Think tanks say that increasing, even doubling, these rates could generate billions more.

But analysis for the BGC by EY, formerly Ernst & Young, found tax rises would hammer the sector, with betting shops, casinos and bingo halls closing.

The economy would suffer as jobs are lost and National Insurance contributions take a hit, leaving a net gain to the Treasury of just £500million.