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UK betting sector launches campaign against proposed tax hike as MGD rise could hit 16,000 jobs
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UK betting sector launches campaign against proposed tax hike as MGD rise could hit 16,000 jobs
The Betting and Gaming Council (BGC) has launched a campaign called “Back Our Betting Shops” as the UK sector pushes back against a proposal to raise the Machine Games Duty (MGD) to 40%. For high-risk operators and their payment partners, the point is straightforward: if the tax bill rises, the pressure shifts to shop closures, payroll cuts, and a smaller retail footprint.
- The campaign is meant to put human faces on the retail betting business: long-serving staff, apprentices, managers, customers, and community partners. The BGC says betting shops are local community hubs, not just businesses, and warns of “very real human consequences” for workers, their families, and nearby businesses.
- Makerfield, the prime minister’s constituency, is being used as the campaign’s reference point. The prime minister has described it as the “Makerfield test”: if a policy does not work for local people or improve their situation, it should not be adopted. BGC chief executive Grainne Hurst said Makerfield tells “a very human story” about what betting shops mean to communities across the UK.
- The BGC cited an Opinium survey showing that 54% of Makerfield residents believe betting shops have contributed to local life. The respondents came from different political affiliations, including Labour voters at 51% and Reform voters at 59%.
- The disputed proposal would raise MGD to 40%. MGD is the tax on gaming machine revenue. A model by EY estimates that the increase could put up to 16,000 jobs, almost 1,500 betting shops, and up to 34 casinos at risk.
- EY’s model also says the Treasury could lose about $166 million rather than gain more revenue. Hurst said further tax rises would cause the kind of damage seen in communities like Makerfield, and questioned whether the policy would pass the prime minister’s own test.
- Industry executives are already putting numbers on the downside. Stella David, chief executive of Entain, warned that doubling the current rate to 40% could trigger widespread betting shop closures and major job losses, and could even reduce government tax intake. Fred Done of Betfred said such a move would force the company to close 495 shops within a year, cutting 2,575 jobs and reducing Treasury receipts by about $90 million. Betfred has already closed 132 venues this year after last year’s tax increase.
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