UK Gambling Operators Warn of Job Losses Amidst Potential Tax Hikes

Two of Britain's largest gambling operators, Entain, the owner of Ladbrokes, and the Rank Group, which operates Mecca Bingo, have warned that increased taxes on the sector could lead to widespread closures and significant job losses. The companies issued a plea ahead of the upcoming budget, urging the Chancellor to reconsider potential tax increases on gambling.

This warning follows a letter sent to John Healey by the heads of six major betting companies, who also cautioned that hundreds of bookmakers could close, resulting in thousands of lost jobs. The leaders of Entain, Flutter, Bet365, Bally's Corporation, Evoke, and Betfred stated that "further tax increases risk adding to a trend that has already seen thousands of betting shops disappear from British high streets."

Stella David, CEO of Entain, noted that the UK has become an "increasingly challenging tax environment." She emphasized that both online and retail operations are crucial to their business, contributing to tax revenues and local communities. "We strongly urge the UK Government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods," David said.

The government is reportedly contemplating an increase in the Machine Games Duty (MGD), the tax applied to slot machines and other similar devices. This consideration comes after the Remote Gaming Duty, which taxes online casino and slots operations, was raised from 21% to 40% in April of this year, following adjustments announced in the previous year's autumn budget.

Richard Harris, CEO of Rank Group, echoed these concerns, stating that speculation about the budget is impacting investor sentiment. He asserted that any rise in MGD would increase costs, diminish the viability of venues, lead to closures and job losses, reduce tax receipts, and halt investment. Harris added that with the right conditions, casinos and bingo clubs could contribute to the government's growth agenda.

The Chancellor is reportedly considering doubling the MGD to 40% in the budget on October 28. This potential move targets adult gaming centers, but industry representatives warn that bingo halls, casinos, and bookmakers will also be affected, putting an estimated 16,000 jobs and 1,500 betting shops at risk.

According to figures from the Betting and Gaming Council (BGC), betting shops support over 36,000 jobs, with a significant portion of employees being young (one in four under 25, 54% under 35), and half of the workforce being women. The BGC highlighted that these jobs are often located in market towns, former industrial areas, and seaside communities, particularly in the North of England and Scotland, where employment opportunities can be scarce.

Grainne Hurst, chief executive of the BGC, stated that these are "good, secure jobs" and are essential for building careers, especially for young people and women balancing work with caregiving responsibilities. The BGC estimates that by the end of this year, more than 600 betting shops will have closed, and over 10,000 jobs lost across the industry since the last budget.

An analysis by accountancy firm EY suggests that increasing MGD to 40% could result in the loss of up to 16,000 jobs, jeopardize nearly 1,500 betting shops and 34 casinos, and ultimately leave the Treasury with a £124 million deficit.