BGC criticises UK Machine Games Duty rise to 25%, citing job risks

The Betting and Gaming Council (BGC) has criticised the UK Chancellor's decision to raise Machine Games Duty (MGD) to 25%, the trade body said on 28 October 2026. The BGC said it was deeply disappointed and concerned by the measure, according to the statement.

Citing EY estimates, the BGC said that at the 25% rate almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or face a serious risk of closure. The BGC said the sector is already absorbing the effects of a £1.7bn tax package introduced last year: the online gambling tax rose to 40% in April 2026, and the rate of the tax on sports betting is due to rise to 25% in April 2027.

Since last year's budget, more than 600 betting shops have closed or announced closure, and more than 11,000 jobs in the online and retail segments have been lost or put at risk, the BGC said. The BGC said the increase would put British casinos' premises and jobs at serious risk and undermine planned investment, despite recent government reforms intended to support the sector's growth.

Closures are expected in northern England and Scotland, where many previously closed premises remain unused, the BGC said. The BGC said the impact would also be felt on UK high streets, where more than eight in 10 betting shop jobs are located outside London, and that those affected would include young people, working parents and carers, often in communities with limited alternative employment.

The BGC said the tax rise would add further pressure on the sector's support for British sport, including annual contributions of about £350m to horse racing and more than £40m to the English Football League and Scottish football, as well as support for rugby league, darts and snooker. The BGC said the regulated sector contributes £6.8bn to the UK economy, generates more than £4bn in tax revenue and supports 109,000 jobs.

Grainne Hurst, chief executive of the Betting and Gaming Council, said the decision was extremely damaging and a heavy blow to the thousands of workers, businesses and communities that depend on the regulated betting and gaming industry in the UK. She said the Chancellor had ignored repeated warnings about the consequences of the measure, that a tax rise on the regulated sector would make the illegal gambling market more attractive to customers, and that illegal operators pay no tax in the UK, contribute nothing to British sport and offer none of the safeguards required of licensed businesses.

Hurst said the government could not ignore the consequences of the decision, which she said would cost British jobs, lead to business closures and leave high streets poorer while giving an advantage to illegal operators.