TAX RAID ON BETTING WOULD CLOSE 3,400 BOOKIES AND COST 25,000 JOBS, NEW ANALYSIS WARNS

Proposals to more than double the tax rate on gaming machines would shut 3,400 bookies and put 25,000 people out of work, according to industry analysis.

Research by the Betting and Gaming Council shows plans sent to the Treasury by a think tank to raise Machine Games Duty (MGD) from 20% to 50% would have a devastating effect on Britain’s high streets.

There are currently 5,800 betting shops across the UK, supporting 42,000 jobs and contributing £140 million a year to horse racing. The sector also pays £1 billion in direct tax to the Treasury and another £60 million in business rates to local councils.

Each bookmaker is limited to just four machines – but under the proposed hike from the Institute for Public Policy Research (IPPR), 3,400 shops could close, 25,000 jobs could go, and horse racing could lose £84 million in vital funding – piling more pressure on already struggling high streets.

The warning comes amid campaigning by anti-gambling groups urging Chancellor Rachel Reeves to raise further taxes on regulated betting and gaming to help fill a £30 billion gap in the public finances.

BGC Chief Executive Grainne Hurst said: “Any increase in betting and gaming taxes on any part of the industry would hammer ordinary punters while threatening British jobs, high streets and the future of horse racing.

“The figures for Machine Games Duty speak for themselves – thousands of shop closures, tens of thousands of job losses, and an £84 million hit to horse racing. This isn’t a small tweak to the tax system – it’s an act of economic vandalism against communities, workers and Britain’s second most popular spectator sport.

“These proposals risk achieving the exact opposite of what the Treasury intends – lower tax receipts, fewer jobs and more punters turning to unsafe, unregulated black market gambling.

“Britain’s betting and gaming sector is one of the most highly regulated in the world, supporting jobs, investment and sport across the UK.

“We urge the Government to resist short-term tax raids that would cause long-term damage – to jobs, to the economy, and to the future of British sport.”

Nearly half of all UK pubs host at least one gaming machine, earning landlords around £9,000 a year on average. Any sharp increase in MGD would add further pressure on those businesses, as well as on bingo halls and casinos that also rely on gaming machines for revenue.

The wider high street would feel the impact too. Research by ESA Retail found that 89% of betting shop customers visit other local businesses during the same trip – underlining the role bookmakers play in supporting footfall and spending.

BGC members currently contribute £6.8 billion to the UK economy, pay £4 billion in taxes, and support more than 109,000 jobs – including thousands in hubs such as Manchester, Leeds, Stoke-on-Trent, Sunderland and Nottingham.

The IPPR has suggested that increasing gambling taxes could raise up to £3.2 billion a year by hiking MGD and Remote Gambling Duty to 50%, and doubling General Betting Duty to 30%.

However, independent analysis shows such measures would damage the regulated sector, cut jobs and tax income, and drive more consumers towards unregulated operators.