UK Gambling Industry Warns of Job Losses Amid Potential Tax Hikes

Two of Britain's largest gambling operators, Entain (owner of Ladbrokes) and Rank Group (owner of Mecca Bingo), have issued a stark warning that proposed tax increases could lead to widespread closures and significant job losses across the sector.

The companies are urging the UK Chancellor to reconsider plans to raise taxes on gambling, particularly the machine games duty levied on slot machines. This comes as the government is reportedly considering doubling this duty to 40% in the upcoming Budget on October 28.

In a joint plea, bosses from Entain, Flutter, Bet365, Bally's Corporation, Evoke, and Betfred previously warned that hundreds of betting shops could shut down, potentially costing thousands of jobs. Entain's Chief Executive, Stella David, stated that the UK has become an "increasingly challenging tax environment" and that further tax increases risk undermining the viability of numerous shops and the livelihoods of those employed.

The Betting and Gaming Council (BGC) estimates that by the end of this year, over 600 betting shops will have closed, resulting in more than 10,000 job losses across the wider industry since the last Budget. The BGC highlighted that the industry supports over 36,000 jobs, with a significant proportion of employees being young people under 35 and women. Many of these jobs are located in market towns, former industrial communities, and seaside towns, particularly in the North of England and Scotland, where employment opportunities can be scarce.

Rank Group CEO Richard Harris echoed these concerns, noting that speculation about tax increases is negatively impacting investor sentiment. He argued that higher machine games duty would increase operational costs, reduce venue profitability, lead to closures and job losses, ultimately decreasing tax receipts and halting investment.

While the focus of the potential tax increase is on adult gaming centers, industry leaders warn that bingo halls, casinos, and bookmakers will also be affected. Accountancy firm EY estimates that a rise in machine games duty to 40% could jeopardize up to 16,000 jobs, place nearly 1,500 betting shops and 34 casinos at risk, and result in a net loss of £124 million for the Treasury.

This potential tax hike follows an increase in remote gaming duty, the tax on online casino and slots, which rose from 21% to 40% in April of this year. The government's consideration of these tax changes occurs amid broader discussions about revitalizing high streets, with some local officials linking betting shops to less desirable businesses.