UK Gambling Tax Hike Could Raise £460M, But Industry Warns of Job Losses

The British gambling industry is pushing back hard against reports that Chancellor John Healey is eyeing a significant increase in machine games duty (MGD) as part of an upcoming budget. Industry operators argue the proposed change would force high-street betting shops to close and eliminate jobs across the sector.

The Social Market Foundation, a thinktank that has been among the most prominent voices calling for the tax increase, estimates that doubling MGD from its current rate of 20% to 40% could generate between £275 million and £460 million in additional annual revenue. That would be on top of the approximately £610 million already collected under the existing regime, representing a potentially transformative shift in how the government captures revenue from gaming machines.

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Betting operators contend that the financial burden of such a steep rate increase would be unsustainable for many high-street locations, where fixed-odds and slot-style machines often anchor profitability. The industry argues that margins are already under pressure and that a doubling of the duty rate would not simply reduce profits — it could render entire shop premises economically unviable.

The debate puts the Treasury in a difficult position, balancing the appeal of raising hundreds of millions in revenue against credible warnings of economic disruption in communities that rely on betting shops as both employers and commercial tenants. Analysts note that the actual revenue yield would depend heavily on how many operators close or reduce their machine inventories in response to the higher rate, meaning headline projections carry meaningful uncertainty.

The chancellor has not publicly confirmed any decision on the measure, and the proposal remains one of several revenue-raising options reportedly under consideration ahead of the budget. Continue reading at Business | The Guardian.