Betting and Gaming Council Decries UK Machine Games Duty Increase as Damaging to Jobs and Licensed Venues

The Betting and Gaming Council has warned that the UK government's increase of Machine Games Duty to 25% could threaten nearly 9,000 jobs and put approximately 1,000 betting shops and casinos at risk of closure. Grainne Hurst, BGC Chief Executive, criticized Chancellor John Healey's decision, citing projections of widespread losses across the regulated 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 rise from 20%, announced in the budget, targets higher-stakes machines in betting shops and arcades. Category C and D machines in pubs remain exempt.

Cumulative Tax Pressures and Projected Losses

The sector is already absorbing £1.7 billion in tax increases from last year's budget. These include the Remote Gaming Duty rise to 40% in April 2026 and the scheduled general betting duty increase to 25% in April 2027. 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 drive customers toward illegal gambling operators that pay no UK taxes and lack required safeguards. Impacts would fall disproportionately outside London, where more than 80% of betting shop jobs are located, with reduced investment likely in northern England and Scotland. The 25% rate sits below the 40% previously considered after proposals from the Social Market Foundation. Its chief economist Gideon Salutin welcomed the step but questioned whether it would significantly change industry behavior.

Operator Concerns and Economic Contributions

Casino operators separately raised viability issues. Richard Harris, CEO of Rank Group, previously warned higher machine taxes could make venues unviable. Paul Willcock, COO of Genting Casinos, emphasized the need for tax certainty. The additional revenue will fund an increase in the small business rates relief threshold from £12,000 ($16,000) to £18,000 ($24,000). Adult Gaming Centers are excluded from that relief.

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. It provides approximately £350 million ($466.31 million) to horseracing and more than £40 million ($53.29 million) to English and Scottish football, plus backing for rugby league, darts and snooker. As reported by Yogonet International, the BGC highlighted these stakes amid recent reforms to encourage casino investment.

Where the Risk Lies

The layered tax rises risk accelerating closures in communities that rely on these venues while offering no clear path to curb migration to unlicensed operators. Operators face tighter margins and investment hesitation that could shrink the licensed footprint faster than anticipated. Policymakers will need to track actual job and venue losses against the revenue forecast to assess whether this balance holds.