MP’s have said the Government’s recent tax policies on online gambling could jeopardize the viability of one of Britain’s leading betting organizations and potentially result in thousands of job losses.

Sir Gavin Williamson, the representative for Stone, Great Wyrley, and Penkridge, expressed concerns that the increase in remote online gambling duty by 19 percentage points may compel bet365, an online betting firm based in Etruria, to reduce its workforce in his constituency.

This tax increase coincides with a rise in the duty for online sports betting, increasing from 15% to 25%, although horse racing will remain exempt. Sir Gavin echoed the sentiments of Grainne Hurst, the chief executive of the Betting and Gambling Council, who remarked last week that this move could deliver a “serious blow” to the betting and gambling sector.

During the third day of the Budget debate in the House of Commons, Sir Gavin highlighted that bet365 employs 5,500 individuals in Stoke-on-Trent, making it the city’s largest private-sector employer. In light of the decline of other key industries in the region, particularly pottery and coal, he noted that bet365 offers valuable, well-compensated employment opportunities.

He stated, “One of the most successful technology companies in this country isn’t located in London or Cambridgeshire; instead, it is based in Stoke-on-Trent, and it is known as bet365. This firm stands as the world’s leading technology entity in the betting sector.”

Furthermore, he warned, “However, this Budget could potentially dismantle one of our most prosperous technology industries, and for what reason? As noted in the OBR’s analysis, ‘the behavioral responses to these changes are uncertain, but are estimated to reduce the yield by around one-third.’”

Bet365 was co-founded by the Coates family, including Denise Coates, who serves as co-CEO alongside her brother John Coates, the majority owner and chairman of Stoke City.

Recent financial reports indicate that the company paid £364 million in taxes for the fiscal year ending March 31, 2024. Notably, the Coates family and bet365 have previously made donations to the Labour Party and Prime Minister Sir Keir Starmer.

Sir Gavin said the OBR believed betting firms would respond to the tax changes by increasing prices or reducing payouts, leading to fewer customers.

He said: “This Budget is an absolute hammer blow to an industry that is providing high-quality, well-paid jobs in Staffordshire, in a city that seen the decline in coal-mining, has seen the decline in ceramics, and has seen so many job losses over so many decades, and bet365 has been one of the most responsible employers, investing in the local community, investing in charity, paying its taxes here in the United Kingdom. In fact the owners of it are the highest payers of tax in the whole of the United Kingdom. This will see jobs being lost in my county. Right across the remit. It’s destroying the old industries of Staffordshire, while also at the same time destroying the new industries of Staffordshire.”