ES
IT
PT
DE
NL
Betting shops and casinos avoid 40 per cent machine tax, but BGC still warns of closures
The Betting and Gaming Council (BGC) has expressed deep disappointment and concern at the Chancellor’s decision to raise Machine Games Duty (MGD) to 25 per cent, warning that at this rate, EY modelling indicates almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk of closure.
The industry is already absorbing last year’s £1.7 billion tax raid: online gaming duty rose to 40 per cent in April 2026, while general betting duty is due to rise to 25 per cent in April 2027. Since last year’s Budget, more than 600 betting shops have closed or announced closure, while over 11,000 jobs across the online and retail sectors have been lost or put at risk.
For Britain’s casinos, the increase will put venues and jobs at serious risk and undermine planned investment, despite recent Government reforms designed to encourage growth. There will be closures in the North of England and Scotland, with many previously closed venues still standing empty.
The impact will be felt across Britain’s high streets, where more than eight in ten betting shop jobs are outside London. Young people, working parents and carers are among those who will lose their livelihoods, often in communities where alternative employment is limited.
The tax rise will also put further pressure on the industry’s vital support for British sport, including annual contributions of around £350 million to horseracing and more than £40 million to the English Football League and Scottish football, alongside support for rugby league, darts and snooker.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, said: “This is a deeply damaging decision and a blow to the thousands of workers, businesses and communities who depend on Britain’s regulated betting and gaming industry.
“The Chancellor has ignored repeated warnings about the consequences. At 25 per cent, EY modelling indicates almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk. These are real people and families facing the loss of their income and security, in places where alternative work can be hard to find.
“For Britain’s casinos, the consequences will be significant. These are major employers and important contributors to local economies, yet this decision will force otherwise viable businesses to close and undermine investment before it can be delivered.
“Every betting shop or casino closure means lost livelihoods, more empty premises and another huge blow to our high streets. These venues will not simply be replaced, particularly in places already struggling to attract jobs and investment.
“Higher taxes on the regulated industry also will make the illegal gambling market more attractive to customers, where operators pay no UK tax, contribute nothing to British sport and offer none of the safeguards required of licensed businesses.
“We already contribute £6.8 billion to the British economy, generate more than £4 billion in tax and support 109,000 jobs. Yet the Government has chosen a course that will destroy jobs, close businesses and diminish the industry’s contribution to the economy.
“The Chancellor has chosen a tax rise that will cost British jobs, close businesses and hollow out high streets, while handing an advantage to illegal operators. The Government cannot ignore the consequences of this decision.”
The British Bingo Association questioned the rationale of putting up the rate bingo clubs pay on their machines by a quarter, just six months after the Government abolished Bingo Duty in April to help clubs invest and survive.
Abolishing Bingo Duty was worth around £22m a year to the sector. The new 25 per cent rate reverses around £13m of that every year. The Association’s modelling, shared with Government before the Budget, shows the number of loss-making clubs rising to 77. Operators had committed £50 million of investment in clubs this year, outside London and the South East. That will now be cut back sharply, and clubs will close.
Nicole Garrett, Chief Executive of the Bingo Association, said: “Bingo clubs cannot invest for the future when every Budget brings a fresh tax threat. In April, the Government scrapped Bingo Duty and promised to back British bingo. Just six months later, it has clawed most of that support back and put hundreds of jobs at risk. Clubs cannot build a future on promises that last six months. This tax raid undermines the Government’s own pledge to deliver growth in every postcode, with clubs in the Midlands and the North facing the hardest hit.”
Steve Grech, Group CEO Europe at Trust Payments, said: “A five point rise in machine games duty, from 20 per cent to 25 per cent, is clearly better than the 40 per cent some feared, and the sector will welcome the clarity. Entain and Rank Group, who each own huge UK land-based gambling sites, saw an approximate 7 per cent rise in share price.”
“But it’s still a significant increase for operators with tight margins. With the new rate starting in April 2027, businesses have a window to review pricing, machine mix and investment plans. The worry is that tax will migrate to responsible, regulated online offerings.”
Mark Renshaw, Chief Executive of Spotlight Sports Group (owner of the Racing Post), said: “Today’s rise in the standard rate of Machine Games Duty from 20 per cent to 25 per cent is smaller than the doubling some had called for, but it’s still a rise. Betting shops are an important part of how British horseracing is funded and followed, so every closure means less for the sport, and we’ll keep working with our partners to help shops modernise and stay open.”
