UK Gambling Tax Hike Could Cost 16,000 Jobs, Officials Warn

Proposed tax increases on the gambling industry in the United Kingdom could lead to the loss of up to 16,000 jobs, with a disproportionate impact on women and younger workers, according to industry representatives. The Betting and Gaming Council (BGC) has urged Chancellor John Healey to reject a potential doubling of the machine games duty (MGD), which would raise the tax on slot machines from 20 percent to 40 percent in the upcoming Budget on October 28.

The BGC stated that such a move risks putting nearly 1,500 betting shops and 34 casinos out of business. These venues support over 36,000 jobs across the country. Figures from the BGC indicate that 54 percent of employees in betting shops are under 35 years old, and women constitute half of the workforce. More than 80 percent of these betting shops are located outside of London, with a significant portion in the North of England and Scotland, areas that can least afford job losses.

Grainne Hurst, chief executive of the BGC, emphasized that these are often the first jobs for young people and provide stable employment in market towns, former industrial communities, and seaside towns. She highlighted that many female employees balance work with childcare and other caring responsibilities, making these secure jobs particularly vital for these communities.

The gambling sector has already faced significant tax increases. The previous Chancellor, Rachel Reeves, raised the remote gaming duty to 40 percent and the levy on online sports betting to 25 percent. The 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.

Accountancy firm EY projects that increasing the MGD to 40 percent could lead to the closure of almost 1,500 betting shops and 34 casinos, potentially costing the Treasury £124 million in lost revenue. Hurst argued that another tax increase would be self-defeating for the government's objectives of creating more jobs for young people and revitalizing high streets.

"The Chancellor should be under no illusion. Another tax rise would put thousands of those livelihoods on the line," Hurst said. "That would mean fewer jobs, more empty units on struggling high streets and less money for public services. Nobody wins."

The BGC is calling on Healey to assess the impact of previous tax hikes and to explicitly rule out any increase in machine games duty. The industry body asserts that the upcoming Budget should support betting shops and the jobs they provide, rather than leading to further closures and economic hardship in local communities.