BGC Warns UK Gaming Tax Increase Could Threaten 9,000 Jobs
United Kingdom.- 30 October 2026 | www.zonadeazar.com The Betting and Gaming Council (BGC), representing the UK’s regulated betting and gaming industry, has warned that the increase in Machine Games Duty could result in the loss of nearly 9,000 jobs and put approximately 1,000 betting shops and casinos at risk of closure.
The warning, published on 29 October 2026, follows the UK Government’s decision to increase Machine Games Duty (MGD) from 20% to 25%.
Projections prepared by EY and cited by the BGC highlight the potential consequences of higher taxation for employment, investment and commercial activity across the sector.
Machine Games Duty to Rise From 20% to 25%
The UK Government announced on 28 October, during its Autumn Budget presentation, that the tax rate on certain gaming machines would increase by five percentage points.
The change will take effect on 1 April 2027, primarily affecting higher-stakes machines in betting shops, casinos and gaming venues.
Lower-stakes Category C and D machines will retain their existing tax treatment.
The Government argues that the measure will generate additional revenue to support business rates relief for certain high street businesses.
EY Projects Nearly 9,000 Jobs at Risk
One of the BGC’s principal arguments is based on economic modelling conducted by EY.
According to the projections cited by the association, increasing MGD to 25% could have the following consequences:
- Employment: nearly 9,000 jobs potentially lost.
- Venues: approximately 1,000 betting shops and casinos could close or face serious closure risks.
- Investment: potential reductions in expansion and modernisation projects.
- Local economies: lower commercial activity in affected communities.
These figures are economic projections, not confirmed job losses or business closures.
The BGC believes the consequences could be particularly severe in areas where alternative employment opportunities are limited.
Grainne Hurst Criticises the Government’s Decision
Grainne Hurst, Chief Executive of the BGC, expressed concern about the consequences of the tax reform.
Hurst described the decision as deeply damaging to the workers, businesses and communities that depend on Britain’s regulated gambling industry.
She argued that the Government had not adequately considered repeated warnings from operators.
The executive also warned that higher operating costs could threaten the future of businesses that are currently commercially viable.
The association believes the wider economic consequences should be considered alongside the additional tax receipts.
More Than 600 Betting Shops Closed or Facing Closure
The BGC highlighted the consequences of tax increases announced in the previous Budget.
According to the association:
- More than 600 betting shops have closed or announced plans to close.
- Over 11,000 jobs have been lost or placed at risk across retail and online gambling.
- Operators have reviewed investment plans and operating structures.
The BGC links these developments to rising taxation across the industry.
However, these figures describe developments since the previous Budget and should be distinguished from the nearly 9,000 additional jobs included in the latest projections.
Further Tax Changes Affect Online Gambling
The MGD increase follows other gambling tax changes announced previously.
Key measures include:
- Remote Gaming Duty: increased to 40% in April 2026.
- General Betting Duty: scheduled to increase to 25% for certain online betting activities in April 2027.
- Machine Games Duty: rising from 20% to 25% for higher-stakes machines from April 2027.
The BGC estimates that changes announced in the previous Budget represent approximately £1.7 billion in tax increases for the industry.
The association argues that the cumulative financial burden could affect operators’ investment decisions.
Northern England and Scotland Among Most Exposed Areas
According to the BGC, the impact of higher taxation could be particularly significant outside London.
The organisation notes that more than 80% of betting shop jobs are located elsewhere in the country.
Northern England and Scotland are among the regions identified as potentially vulnerable.
The association argues that closures could affect communities where betting shops and casinos contribute to employment and local economic activity.
It also warns that reduced investment could limit the benefits of recent reforms intended to encourage casino development.
Adult Gaming Centres Excluded From Business Rates Relief
The Government has introduced measures designed to reduce certain business rates for retail, hospitality and leisure establishments.
These include increasing a small business relief threshold from £12,000 to £18,000.
However, Adult Gaming Centres (AGCs) have been excluded from certain business rates relief measures.
This has raised concerns among land-based operators, which will face higher gaming machine taxation without necessarily receiving the same support available to other commercial businesses.
BGC Raises Concerns About Illegal Gambling
Another concern relates to competition from unlicensed gambling operators.
Hurst warned that higher taxation on regulated businesses could encourage customers to move towards illegal gambling platforms.
According to the BGC, these operators do not pay equivalent UK taxes or comply with the consumer protection requirements imposed on licensed businesses.
The association argues that gambling tax reforms should consider their potential impact on the proportion of customers using regulated services.
This remains an industry warning about possible consequences rather than a demonstrated effect of the new tax increase.
Industry Highlights Economic and Sporting Contributions
The BGC also emphasised the regulated industry’s contribution to the British economy.
According to figures published by the association, the sector:
- Contributes £6.8 billion annually to the economy.
- Generates more than £4 billion in tax revenue.
- Supports approximately 109,000 jobs.
- Contributes £350 million annually to horseracing.
- Provides more than £40 million to English and Scottish football.
The organisation also highlighted the industry’s commercial support for rugby league, darts and snooker.
These figures form part of the BGC’s argument for assessing the wider consequences of increased gambling taxation.
Different Perspectives on the Tax Increase
While the BGC and several gambling operators criticised the reform, organisations supporting higher gambling taxation expressed different views.
The Social Market Foundation (SMF) had previously proposed increasing MGD to 40%, above the 25% rate ultimately announced.
Gideon Salutin, Chief Economist at the SMF, welcomed the decision to raise the duty but questioned whether the increase would be sufficient to significantly change industry behaviour.
The debate reflects differing perspectives on the balance between tax revenue, consumer protection, economic activity and business sustainability.
Industry Impact and Next Steps
The increase in Machine Games Duty presents another challenge for UK land-based betting and casino operators.
The Government aims to raise additional revenue and finance support for other high street businesses, while the BGC warns of potential consequences for employment and investment.
The new rate will take effect on 1 April 2027, after which its actual impact can be assessed.
According to EY projections cited by the BGC, the increase to 25% could put nearly 9,000 jobs and approximately 1,000 gambling venues at risk across the United Kingdom.
Developments in business closures, investment and operator activity will determine how closely these projections reflect the eventual outcome.
Edited by: @fonta
