Chief executives from leading UK betting and gaming companies have urged Chancellor John Healey to rule out further gambling tax increases in the upcoming Budget.
The Betting and Gaming Council said members had written to the Treasury ahead of the 28 October announcement. It is particularly concerned about a possible doubling of Machine Games Duty from 20% to 40%, as well as a General Betting Duty increase planned for April 2027.
BGC Warns Higher Machine Games Duty Could Close More Betting Shops
The BGC said its members had asked the Chancellor to delay the planned General Betting Duty increase “until the impact of tax rises already introduced has been fully assessed”.
This letter was signed by executives from Entain, bet365, Bally’s Corporation, Evoke, Betfred and Flutter UK & Ireland. It warned that over 600 betting shops had closed and 10,250 jobs across online and retail operations had been lost or announced for redundancy since the 2025 Budget.
The council also cited UK Gambling Commission data showing that betting shop numbers in Great Britain have fallen by around 38% since 2015.
Industry Analysis Projects Further Closures And Job Losses
According to the BGC, EY analysis estimates that increasing Machine Games Duty on Category B machines to 40% could result in between 690 and 1,470 additional betting shop closures.
This analysis also forecasts 28 to 34 casino closures and between 11,600 and 15,900 job losses. The BGC said the combined impact could create a net loss of up to £124 million for the Treasury.
Horseracing may also be affected, with the BGC estimating at least £40 million in lost levy and media-rights payments. Separate research by Regulus Partners suggested that British horseracing could lose around £92 million each year if Machine Games Duty rose to 40%.
Regulus Partners also questioned whether over 25% of betting shops currently operating in the UK would survive after three years under the proposed rate.
BGC Says Further Tax Rises Could Damage Jobs And British Sport
BGC chief executive Grainne Hurst said the letter represented a serious warning to the Treasury.
She said members “have delivered a stark warning to the Chancellor”, adding that further tax increases could lead to more business closures, put thousands of additional jobs at risk and damage British sport.
“These are real jobs, real livelihoods and businesses at the heart of communities across Britain. Further tax rises will only accelerate that decline,” Hurst said. “You cannot tax businesses that have closed, and the Government risks destroying jobs and investment without raising a penny more for the Treasury,” she concluded.
The industry’s warning centres on the risk that higher rates could reduce the tax base by accelerating closures and job losses. Hence, the government must weigh immediate revenue expectations against the sustainability of betting shops, casinos and sports funding in the long term.
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