The UK government is considering doubling the tax on high-street slot machines, a move that could lead to significant betting shop closures and job losses, directly affecting players and local communities.
The chancellor, John Healey, is reportedly contemplating an increase in the machine games duty (MGD) from 20% to 40%. This change aims to generate an additional £460 million annually, supplementing the roughly £610 million collected last year. The proposal has sparked debate about its potential impact on players, betting shops, and the wider gambling industry.
Slot machines are a major revenue source for bookmakers, often surpassing income from sports betting within physical shops. Industry representatives warn that doubling the tax could force the closure of nearly a third of the UK’s 5,617 betting shops, leading to the loss of approximately 15,900 jobs. This would reduce players’ access to in-person betting venues, particularly in areas where online gambling is less accessible or preferred.
Fred Done, owner of Betfred, has stated that the tax hike could result in the closure of about 495 shops in his chain alone, costing 2,475 jobs and £67 million in tax revenue. Entain, which owns Ladbrokes and Coral, has also indicated it may need to reduce staff across its 2,300 shops if the tax increase proceeds. Casinos and bingo halls could be affected as well; Rank Group, owner of Mecca Bingo and Grosvenor Casinos, warned that a third of its venues might close, impacting 2,000 employees.
However, some experts question the severity of these warnings. Stewart Kenny, co-founder of Paddy Power and a critic of the industry, described these claims as “scaremongering.” Historical examples show that industry threats to close shops in response to regulation or tax increases have often resulted in fewer closures than predicted, partly due to a shift toward online gambling platforms.
For players, potential closures mean fewer physical locations to gamble, which could push more activity online. While this shift might offer convenience, it also raises concerns about increased exposure to online gambling harms, especially for vulnerable individuals. The tax increase could also reduce local employment opportunities and decrease funds that support horse racing and other sports through betting levies.
Bet365, which operates exclusively online, recently cited increased gambling duties in last year’s budget as a factor in cutting about 300 jobs at its Stoke-on-Trent headquarters. A spokesperson said the company was responding to a “highly competitive trading environment, plus increased regulatory and tax-related costs.” Some staff believe government policy was used as a convenient explanation for corporate cost-cutting measures.
Players should be aware that changes in taxation and regulation can influence the gambling environment, including the availability of venues and the industry’s approach to responsible gambling. Monitoring these developments is important for understanding how access and protections may evolve.
For further information on UK gambling regulation and its impact on players, visit our UK gambling news and responsible gambling sections.
Related coverage includes the UK Gambling Commission’s recent updates on gaming machine compliance frameworks, detailed by SBC News, and insights into the broader gambling industry trends from CDC Gaming.
Source: Gambling | The Guardian.
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