BGC warns higher gambling machine tax could cost 16,000 jobs
The UK’s Betting and Gaming Council (BGC) has warned that proposals to increase taxes on gambling machines could cost thousands of jobs, force betting shops and casinos to close and ultimately reduce government revenue.
Responding to calls from a group of Labour MPs for higher Machine Games Duty (MGD), BGC chief executive Grainne Hurst described the proposal as “deeply misguided” and warned of serious consequences for Britain’s high streets.
“MPs are right to be concerned about protecting communities and high streets, but it is deeply misguided to suggest that higher taxes on betting shops and casinos will achieve that,” Hurst said.
“This letter claims doubling Machine Games Duty would protect high streets and raise revenue. The independent evidence speaks for itself and tells a very different story.”
The industry body cited modelling by consultancy EY suggesting an increase in MGD to 40% could result in the loss of up to 16,000 jobs, the closure of nearly 1,500 betting shops and 34 casinos, and a £124 million reduction in Treasury revenue.
“More than 600 betting shops have already closed or announced closure since the last Budget, with over 10,000 jobs lost or put at risk,” Hurst said.
“These are good local jobs, many held by young people, working parents and carers, and more than eight in ten are outside London.”
The response follows a letter sent to Chancellor John Healey on Friday by Labour MPs led by Alex Ballinger, urging the government to increase taxes on Category B gambling machines, particularly B3 machines found in adult gaming centres.
The MPs argued that gambling products associated with greater harm should face higher taxation, describing the proposed increase as a targeted measure that could raise additional government revenue.
Their intervention comes ahead of the Autumn Budget on October 28, amid growing speculation that the government could impose further tax increases on Britain’s land-based gambling industry.
The proposals follow the government’s decision to increase Remote Gaming Duty on online gambling from 21% to 40%, a change that took effect on April 1.
The BGC maintains that further increases would undermine investment and accelerate closures across an industry already facing rising operating costs.
“MPs calling for higher taxes should consider the consequences for the very communities they say they want to protect,” Hurst said.
“Every closure means another empty shopfront, fewer jobs and another blow to Britain’s high streets.”
