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BGC warns MGD rise could put thousands of jobs at risk

BGC cites EY modelling showing job and venue losses if MGD rises to 40%

By Miguel SandovalPublished Oct 14, 20264 min readEurope
Interior of a British betting shop with signage and staff serving customers on the high street

Key Takeaways

  • EY modelling cited by the Betting and Gaming Council projects a machine games duty increase to 40% could put up to 16,000 jobs at risk.
  • More than 80% of the jobs identified as at risk are outside London; nearly 1,500 betting venues and 34 casinos could be affected.
  • The BGC states the proposed increase could leave the UK Treasury £124 million worse off in net receipts.

The Betting and Gaming Council (BGC) has warned that proposed tax increases for the gambling sector in the upcoming UK Budget could put thousands of high-street jobs at risk. The BGC cites independent modelling by EY that indicates raising the Machine Games Duty (MGD) to 40% could threaten up to 16,000 jobs, nearly 1,500 betting venues and 34 casinos, and reduce Treasury receipts by £124 million.

Regional employment and workforce demographics

Regulated betting shops in the United Kingdom sustain more than 36,000 jobs, and the BGC emphasises that more than 80% of those roles are located outside London, in market towns, coastal towns and former industrial areas. The council says the sector acts as a source of local employment for groups facing barriers to the wider labour market.

Demographic figures provided by the BGC show that 19% of the workforce is under 25 and 51% is under 35, compared with national averages of 11% and 35% respectively. Women make up half the workforce and benefit from structured contracts and flexible shifts that help reconcile work with caring responsibilities.

Independent EY model and quantified effects

The modelling carried out by Ernst & Young (EY) is used as the quantitative basis for the public warning. EY projects that an increase of the MGD to 40% would result in:

  • up to 16,000 jobs at risk;

  • nearly 1,500 betting venues at risk of closure;

  • 34 casinos potentially affected;

  • a net loss to the Treasury of £124 million in revenue.

The BGC has shared these results with a geographic breakdown: 80% of jobs at risk are located outside London, 27% in the North of England and almost 40% when combining the northern regions and Scotland.

Executive statements and request to government

Grainne Hurst, Chief Executive of the Betting and Gaming Council, said:

"Britain’s betting shops sustain more than 36,000 jobs, and more than eight out of ten of those are outside London. These are good, secure jobs in market towns, industrial communities and coastal towns, many in the North where opportunities are more limited." — Grainne Hurst, Betting and Gaming Council

Hurst added:

"Almost one in five employees is under 25 and more than half are under 35. For many it is their first job and their first chance to build a career. Half the workforce are women, many combining work with caring responsibilities." — Grainne Hurst, Betting and Gaming Council

The BGC has asked the Chancellor of the Exchequer explicitly to rule out increases to the MGD and to pause planned rises in the General Betting Duty.

Fiscal risk and the revenue argument

The EY study not only estimates job losses and venue closures; it also projects a negative impact on public revenue. The BGC highlights that an increase in the MGD to 40% could leave the Treasury £124 million worse off. That figure is presented in the council’s statement as evidence that the measure could be counterproductive from a revenue perspective.

Implications for local communities and public policy

The BGC frames its argument in terms of regional and social impact: the concentration of jobs outside London means most of the economic consequences would fall on areas with fewer alternative employment options. The betting shop sector is described by the council as a provider of initial work experience — customer service skills and administrative tasks — that facilitate later labour mobility.

For policymakers and legislators, the BGC’s call is clear: any change to the tax regime should assess effects on local employment, high-street business structures and the Treasury’s net receipts.

What operators and stakeholders can expect

Operators, trade associations and local authorities will need to follow the Government’s budget process and the Chancellor’s response closely. The BGC has made its position public ahead of formal deliberations, supported by EY data. The public discussion on gambling taxes now enters a phase where quantitative evidence will play a key role. [Operators](/b2b) and local stakeholders will watch consultations and parliamentary debates for further detail.

Context and next steps

The Betting and Gaming Council’s statement arrives ahead of the United Kingdom Government’s Budget. The BGC urges that no additional increases be introduced to the Machine Games Duty or the General Betting Duty, invoking both job protection and the interest of public revenue. EY’s figures have become the focal point of that claim and will be referenced in subsequent sector debates and in the House of Commons.

Frequently Asked Questions

What job impact does EY project if the MGD rises to 40%?

EY projects that raising the Machine Games Duty to 40% could place up to 16,000 jobs at risk, and estimates that nearly 1,500 betting venues and 34 casinos could be jeopardised.

Where are the jobs that could be lost concentrated?

More than 80% of the jobs identified as at risk are located outside London, with 27% in the North of England and almost 40% when combining the northern regions and Scotland.

What fiscal effect does the BGC say the MGD rise would have?

The BGC, citing EY modelling, states that an increase of the MGD to 40% could leave the UK Treasury £124 million worse off in net revenue, which the council uses to argue the measure may be counterproductive.

Tags

betting-and-gaming-councilmachine-games-dutyuk-budgetemployment

About the author

Miguel Sandoval

Miguel Sandoval

Regulatory Affairs Correspondent

Miguel Sandoval tracks gambling legislation, licensing, and regulator enforcement — from Spain's DGOJ and the Latin American authorities to the UKGC, the MGA, and the state-by-state map in North America. The reports answer three questions precisely — what changed, where, and who it affects — with jurisdictions, dates, and penalties cited exactly as published. Operators and compliance officers read Miguel Sandoval to know which rulebook moved before their next meeting.

More from Miguel Sandoval

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