UK Gambling CEOs Urge Chancellor To Abandon Further Betting Shop Tax Increases
Executives from six major gambling operators have warned that further tax rises could threaten thousands of jobs, accelerate betting shop closures and reduce Treasury revenues.
Chief executives from some of the UK’s largest gambling operators have urged Chancellor John Healey to abandon proposals to double Machine Games Duty (MGD) and postpone the planned increase in General Betting Duty (GBD).
In a letter coordinated through the Betting and Gaming Council (BGC), senior executives from Entain, Flutter UK and Ireland, bet365, Bally’s Corporation, Evoke and Betfred warned that further taxation could have serious consequences for the land-based gambling sector.
The intervention comes ahead of the Autumn Budget, with the Treasury considering whether to increase MGD on Category B gaming machines from 20% to 40%. Meanwhile, GBD is already scheduled to rise from 15% to 25% in April 2027, following the increase in Remote Gaming Duty (RGD) from 21% to 40% earlier this year.
The executives have called for the proposed MGD increase to be rejected and the scheduled GBD rise to be delayed, arguing that businesses need more time to assess the impact of the taxation changes already introduced.
Industry Warns Of Betting Shop Closures And Job Losses
The BGC cited analysis from EY estimating that doubling MGD could force between 690 and 1,470 betting shops and 28 to 34 casinos to close. The modelling also suggests that between 11,600 and 15,900 jobs could be threatened, with the resulting economic disruption potentially leaving the Treasury facing a net revenue loss of up to £124 million.
Horse racing could also suffer, with the analysis projecting a £40 million reduction in levy contributions and media rights payments. The figures are industry-backed forecasts rather than confirmed outcomes, but highlight the concerns being raised about the wider consequences of further tax increases.
BGC Chief Executive Grainne Hurst said:
“Our members have delivered a stark warning to the chancellor. Further tax rises will close more businesses, cost thousands more jobs and damage British sport, while potentially leaving the Treasury worse off.”
The letter also highlighted the financial pressure already facing operators following the previous Budget. According to the BGC, more than 600 betting shops have closed since then, while approximately 10,250 jobs across online and retail gambling have either been lost or placed at risk of redundancy.
Retail Operators Face Growing Financial Pressure
Concerns extend beyond major operators with both online and retail businesses, with independent bookmakers and bingo halls potentially facing significant challenges from higher machine taxation.
Category B gaming machines represent an important revenue stream for many land-based gambling businesses, meaning an increase in MGD could directly affect the profitability of individual premises.
Jennings Bet Managing Director Greg Knight recently warned that 104 of the independent bookmaker’s 212 shops would immediately become unprofitable if the proposed increase were implemented. Unlike larger operators, Jennings Bet does not have an online business to provide an alternative source of revenue.
Separate modelling from Regulus Partners has suggested that more than 4,000 betting shops could close over a three-year period under a more severe scenario, although this represents a different projection from the EY analysis cited by the BGC.
BGC Calls For Pause On Further Gambling Tax Reform
The industry’s intervention follows a period of substantial changes to gambling taxation, with the increase in RGD already affecting online operators and the planned GBD rise creating further uncertainty for businesses.
The BGC argues that introducing additional increases before the effects of those measures can be fully assessed risks undermining investment, employment and the long-term sustainability of the retail sector.
Hurst reiterated the industry's position, stating:
“The industry is already grappling with the near doubling of Remote Gaming Duty. The chancellor must rule out further tax rises at this budget, including on Machine Games Duty, and pause the planned increase in General Betting Duty.”
She added:
“You cannot tax businesses that have closed, and the government risks destroying jobs and investment without raising a penny more for the treasury.”
The Treasury has yet to confirm whether the proposed MGD increase will feature in the Autumn Budget, leaving operators awaiting clarity on the next stage of the government's gambling tax policy.
