A proposed increase in Machine Games Duty (MGD) to 40% could put up to 16,000 jobs at risk across Britain’s betting and gaming sector, according to the Betting and Gaming Council (BGC).
The BGC warned that further tax increases could threaten more than 36,000 jobs supported by Britain’s betting shops, with young workers, women, and communities outside London particularly exposed ahead of the upcoming Budget.
Over 80% of betting shop jobs are based outside London, including in market towns, former industrial communities and seaside towns. Almost one in five employees, or 19%, is under 25, compared with 11% across the wider economy. More than half, or 51%, are under 35, against 35% nationally.
Betting shops also provide employment opportunities for women, who account for half of the workforce, the association highlighted. The sector offers contracted employment and working patterns that can accommodate childcare and other caring responsibilities.
The BGC warned that increasing MGD to 40% could put thousands of jobs at risk. Independent modelling by EY estimates that the tax increase could cost up to 16,000 jobs, threaten almost 1,500 betting shops and as many as 34 casinos, and leave the Treasury up to £124 million (US$163.88 million) worse off.
Around 80% of the jobs potentially affected are outside London, with 27% located in northern England. The proportion reaches nearly 40% when Scotland is included.
Grainne Hurst, Chief Executive of the BGC, said the proposed increase could undermine employment in communities where job opportunities are harder to find.
“Almost one in five betting shop employees is under 25 and more than half are under 35,” she said. “For many, it is their first job, their first pay packet and their first opportunity to build a career.”
She also noted that half of the workforce are women, including those balancing employment with childcare and caring responsibilities.
Hurst added that another tax increase could lead to further shop closures and job losses, affecting young workers, working parents, and carers.
Hurst also referred to the Treasury’s position last year that it wanted to support fun, social, in-person gambling, citing the higher employment levels provided by land-based betting. She said increasing taxes on betting businesses would conflict with the government’s aims of helping more young people find work and revitalising high streets.
“Our message to the Chancellor is simple: rule out any increase in Machine Games Duty, assess the damage already caused by higher taxes and halt the planned rise in General Betting Duty,” she continued. “This Budget must back Britain’s betting shops, not cost our towns thousands more jobs.”
The sector has faced additional tax pressure since then, including an increase in Remote Gaming Duty to 40% and a further rise in General Betting Duty scheduled for April 2027.
The wider regulated betting and gaming industry supports 109,000 jobs, contributes £6.8 billion (US$8.99 billion) to the UK economy and generates more than £4 billion (US$5.29 billion) in annual tax revenue, according to BGC figures.
Betting shops also contribute around £140 million (US$185.02 million) annually to British horseracing, while BGC members provide more than £40 million (US$52.86 million) a year in funding for sports, including the English Football League and rugby league.