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Machine Games Duty rise would threaten 36,000 betting shop jobs, says BGC

BGC warns a rise to 40% MGD could cost up to 16,000 jobs and close 1,500 shops.

By Oliver GrantPublished Oct 13, 20265 min readUSA
High street betting shop closed shutters with a row of empty retail units and a notice, representing local job risk from tax changes

Key Takeaways

  • Betting and Gaming Council says Britain’s betting shops support more than 36,000 jobs, with over 80% outside London.
  • EY modelling commissioned by the BGC estimates a rise in Machine Games Duty to 40% could cost up to 16,000 jobs.
  • The same EY estimates put almost 1,500 betting shops and up to 34 casinos at risk and a potential £124 million revenue loss for the Treasury.
  • The sector reports that 19% of shop staff are under 25 and 51% are under 35, and women make up half the workforce.

The Betting and Gaming Council told the Chancellor ahead of the Budget that Britain’s betting shops support more than 36,000 jobs, and that raising Machine Games Duty to 40 per cent would put thousands of those roles at risk. Independent EY modelling commissioned by the BGC estimates an increase to 40 per cent could cost up to 16,000 jobs, threaten almost 1,500 betting shops and jeopardise as many as 34 casinos, while leaving the Treasury up to £124 million worse off.

Who works in betting shops and where they are located

More than 80 per cent of betting shop jobs are based outside London, the Betting and Gaming Council said, concentrated in market towns, former industrial communities and seaside towns across the North of England and beyond. The sector provides a disproportionate number of early-career roles: 19 per cent of betting shop employees are under 25, compared with 11 per cent across the wider economy, and 51 per cent are under 35 versus 35 per cent nationally.

Women make up half the betting shop workforce, the BGC added, and the jobs provide contracted employment and shift patterns that many employees can combine with childcare or caring responsibilities. The BGC framed those demographics as part of its plea to the Treasury not to increase tax on machines.

Machine Games Duty: the numbers the industry is citing

Independent modelling by EY is the central piece of evidence cited to make the case against a duty rise. The study's headline estimates are:

  • up to 16,000 jobs lost if Machine Games Duty is raised to 40%

  • almost 1,500 betting shops at risk of closure

  • as many as 34 casinos at risk

  • the Treasury could be £124 million worse off

The BGC emphasised regional concentration in the figures: 80 per cent of jobs potentially impacted lie outside London; 27 per cent are in the North of England, rising to almost 40 per cent when Scotland is counted.

"Britain’s betting shops support more than 36,000 jobs, and more than eight in ten of them are outside London," said Grainne Hurst, Chief Executive of the Betting and Gaming Council. "Another tax rise would put thousands of those livelihoods on the line."

The broader tax context and past changes

The BGC noted recent tax changes that have already increased pressure on the sector. Remote Gaming Duty was raised to 40 per cent and a further rise in General Betting Duty is scheduled for April 2027. The organisation says those measures, combined with a potential Machine Games Duty increase, are squeezing the land-based segment despite the Treasury's previous recognition that in-person gambling provides higher levels of employment.

The regulated betting and gaming industry is reported to support 109,000 jobs, contribute £6.8 billion to the UK economy and generate more than £4 billion a year in tax. Betting shops alone contribute around £140 million annually to British horseracing, and BGC members provide more than £40 million a year in funding for sports including the English Football League and rugby league.

What the BGC wants from the Chancellor and what it warns would happen

The BGC's policy ask is explicit: 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. The council argued that increasing MGD would lead to empty high-street units, fewer jobs and less money for public services — while costing the Treasury revenue according to EY's estimate.

The BGC also framed the issue as one of wider social and economic policy: at a time when ministers say they want to get more young people into work and revive high streets, the council says further taxation would be counterproductive.

What operators, regulators and policy teams should note

Operators and suppliers working in land-based gambling need to factor continued tax uncertainty into commercial planning for next year. The BGC's submission places particular emphasis on local employment effects outside London and on funding flows into horseracing and community sport. Policy teams in HM Treasury will be balancing those points against fiscal targets; the BGC points to the EY estimate that the Treasury could lose revenue if duty increases trigger closures.

The debate will involve multiple instruments in the tax mix: Machine Games Duty, General Betting Duty, and Remote Gaming Duty. Observers should expect industry lobbying to focus on regional employment, youth employment statistics and the quantified Treasury impact from the EY modelling presented by the BGC.

For further reading on regulatory matters connected to gambling taxation, the sector often discusses these topics under regulation and commercial operators track implications in the b2b press.

Wider consequences cited by the BGC

The Betting and Gaming Council warned that closures would not only cost jobs but also affect British horseracing and community sports funding. The organisation calculated that betting shops contribute roughly £140 million a year to horseracing and that its members provide more than £40 million a year to sports including the English Football League and rugby league. The BGC's submission uses those figures to underline the potential knock-on effects of shop closures for the wider sports and events ecosystem.

The Budget decision is due in the short term, and the outcome will determine whether the sector faces additional tax increases in the coming financial year and the scheduled General Betting Duty rise in April 2027.

Frequently Asked Questions

How many jobs do betting shops support in the UK?

Betting shops support more than 36,000 jobs across Britain, with over 80% of those roles located outside London, according to the Betting and Gaming Council.

What would a rise in Machine Games Duty to 40% do to employment?

Independent EY modelling cited by the BGC estimates that raising Machine Games Duty to 40% could cost up to 16,000 jobs and put almost 1,500 betting shops and 34 casinos at risk.

What fiscal impact does EY project from an MGD increase?

EY's modelling, as presented by the Betting and Gaming Council, projects the Treasury could be up to £124 million worse off if Machine Games Duty is increased to 40%.

Source: G3 Newswire

Tags

machine-games-dutybetting-shopstaxationb2b

About the author

Oliver Grant

Oliver Grant

Industry Technology Correspondent

Oliver Grant covers the technology and business machinery of iGaming — platform and data deals, AI and compliance tooling, affiliate and marketing shifts, and the quarterly numbers behind them. The reports lead with the announcement, name the vendors and figures exactly as published, and separate genuine capability from press-release promise. When a supplier ships a new engine or a regulator tightens ad rules, Oliver Grant explains what actually changes for the companies involved.

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