The Betting and Gaming Council (BGC) has warned that the UK government’s decision to increase Machine Games Duty (MGD) to 25% could threaten nearly 9,000 jobs and put approximately 1,000 betting shops and casinos at risk of closure, raising concerns over the cumulative impact of higher gambling taxes.
BGC Chief Executive Grainne Hurst criticized Chancellor John Healey’s decision, citing EY projections of widespread job losses and business closures across the regulated gambling sector.
“This is a deeply damaging decision and a blow to the thousands of workers, businesses and communities who depend on Britain’s regulated betting and gaming industry,” Hurst said.
The increase from 20% to 25%, announced in Wednesday’s budget, applies to higher-stakes gaming machines in betting shops and arcades. Lower-stakes Category C and D machines in pubs remain exempt, while Adult Gaming Centers will be excluded from business rates relief.
The additional revenue will help finance an increase in the small business rates relief threshold for retail, hospitality and leisure businesses from £12,000 ($16,000) to £18,000 ($24,000).
The BGC said the industry was already absorbing £1.7 billion in tax increases announced in last year’s budget, including the rise in Remote Gaming Duty to 40% in April 2026 and a scheduled increase in general betting duty to 25% in April 2027.
According to the council, more than 600 betting shops have closed or announced closures since the previous budget, while over 11,000 jobs have been lost or put at risk. Hurst warned that higher taxes could also drive customers toward illegal gambling operators that pay no UK taxes and lack the safeguards required of licensed businesses.
The council said further closures would disproportionately affect communities outside London, where more than 80% of betting shop jobs are located. It also warned of reduced investment and potential closures in northern England and Scotland, despite recent government reforms intended to encourage casino investment.
The BGC highlighted the industry’s annual contributions of approximately £350 million ($466.31 million) to horseracing and more than £40 million ($53.29 million) to English and Scottish football, alongside support for rugby league, darts and snooker. It said the regulated sector contributes £6.8 billion ($9 billion) to the economy, generates over £4 billion ($5.33 billion) in taxes and supports 109,000 jobs.
Casino operators have separately raised concerns about the impact on investment. Rank Group CEO Richard Harris previously warned that higher machine taxes could make venues unviable, while Genting Casinos COO Paul Willcock emphasized the need for tax certainty.
The 25% rate is below the 40% previously considered following calls for higher gambling taxes, including proposals from the Social Market Foundation (SMF). SMF chief economist Gideon Salutin welcomed the increase but questioned whether it would significantly change industry behavior.