Betting and Gaming Council warns 25% machine duty could put 9,000 jobs at risk

The Betting and Gaming Council (BGC) said it was disappointed by the decision to raise Machine Games Duty (MGD) to 25%, the tax on gaming machines. The association said projections by EY indicate that almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk of closure at that rate.

The BGC said the increase comes as the sector is still absorbing a £1.7bn tax burden decided the previous year. That measure raised the tax on online gambling to 40% from April 2026 and will raise the tax on betting to 25% in April 2027, according to the association.

Since the latest budget, more than 600 betting shops have closed or announced closure, the BGC said. More than 11,000 jobs across online and physical outlets have been lost or are at risk, it said.

For British casinos, the BGC said the increase will put venues and jobs at serious risk and will affect planned investment, despite recent reforms introduced by the government to support growth. The BGC expects closures in the north of England and in Scotland, while many venues closed in the past remain empty, it said.

The impact will be felt in town centres across the country, where more than eight in 10 betting shop jobs are outside London, according to the BGC. Young people, working parents and people caring for relatives are among those who will lose their livelihood, often in communities where job alternatives are limited, the association said.

The BGC said the increase will put further pressure on the sector's support for British sport. The industry pays about £350m a year to horse racing and more than £40m to the English Football League and Scottish football, it said, with additional support for rugby, darts and snooker.

Grainne Hurst, chief executive of the Betting and Gaming Council, said the decision was deeply damaging and a blow to the thousands of workers, businesses and communities that depend on the legal betting and gaming industry in the UK. She said the Chancellor had ignored repeated warnings about the consequences.

Hurst said that at a 25% rate EY projects almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk. She said these are real people and families at risk of losing income and security in places where finding other work can be difficult.

Hurst said the consequences for British casinos would be heavy, describing them as large employers that contribute significantly to local economies, and said the decision would force otherwise sustainable businesses to close and affect investment before it can be made. She said every betting shop or casino closure means lost jobs, more empty venues and another blow to town centres, and that these venues will not simply be replaced, especially in places already struggling to attract work and investment.

Hurst said higher taxes on the legal industry would make the illegal gambling market more attractive to customers, where operators pay no tax in the UK, make no contribution to British sport and offer none of the protections required of licensed businesses. She said the sector already contributes £6.8bn to the British economy, generates more than £4bn in taxes and supports 109,000 jobs, and that the government had chosen a path that will destroy jobs, close businesses and reduce the sector's contribution to the economy.

Hurst said the Chancellor had chosen a tax increase that will cost British jobs, close businesses and empty town centres while benefiting illegal operators, and that the government cannot ignore the consequences of the decision.