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Nearly 9,000 jobs and around 1,000 betting shops and casinos could face closure risks following the increase in Machine Games Duty to 25%, according to the Betting and Gaming Council (BGC).
Good to know
- Machine Games Duty will rise from 20% to 25% on higher-stakes machines in betting shops and arcades.
- The BGC cites EY projections when warning about potential job losses and closures.
- Extra revenue will help fund higher small business rates relief thresholds.
Communities outside London could bear much of the impact. More than 80% of betting shop jobs sit outside the capital, according to the BGC, which also warned about reduced casino investment in northern England and Scotland.
The council argues that further closures would undermine recent government reforms intended to encourage investment in casinos.
Higher Machine Games Duty Adds to Existing Tax Costs
BGC Chief Executive Grainne Hurst criticized the decision by Chancellor John Healey, pointing to EY projections of potential losses across the regulated gambling sector.
The warning follows an already difficult period for betting shops. According to the council, more than 600 have closed or announced closures since the previous budget. Over 11,000 jobs have either disappeared or face uncertainty.
Those figures describe existing losses and risks. The latest warning concerns the potential impact of the additional Machine Games Duty increase.
Meanwhile, operators are absorbing £1.7 billion in tax increases announced in the previous budget, the BGC said. Those changes include Remote Gaming Duty rising to 40% in April 2026 and a scheduled increase in general betting duty to 25% in April 2027.
Hurst also warned that higher taxes could send customers toward illegal gambling operators, which pay no UK gambling taxes and lack the safeguards required of licensed businesses.
Where the Additional Tax Revenue Will Go
The budget announcement raises Machine Games Duty from 20% to 25% for higher-stakes machines in betting shops and arcades. Lower-stakes Category C and D machines in pubs remain exempt from the increase.
The government will use the additional revenue to help raise the small business rates relief threshold for retail, hospitality and leisure businesses from £12,000 ($16,000) to £18,000 ($24,000). However, Adult Gaming Centers will not qualify for business rates relief.
The BGC also highlighted the financial links between gambling operators and sport. It said the industry contributes around £350 million annually to horseracing and more than £40 million to English and Scottish football, alongside support for rugby league, darts and snooker.
According to the council, the regulated sector supports 109,000 jobs, contributes £6.8 billion to the economy and generates more than £4 billion in taxes.
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