Britain’s Casinos Warn 3,800 Jobs at Risk as Tax Hike Threatens Closures

Britain’s casino industry has warned that up to 3,800 jobs could disappear and venues across the country may close for good if Chancellor John Healey doubles Machine Games Duty in his first Budget later this month.

The Betting and Gaming Council (BGC) says raising the standard rate of Machine Games Duty (MGD) from 20 per cent to 40 per cent would be an “existential threat” to the sector. 

Some operators are said to be weighing up closing as much as a third of their estates.

The warning lands just over two weeks before Healey delivers the Autumn Budget on Wednesday 28 October.^[1] The Treasury has not confirmed any change to MGD, but reports throughout September suggested the Chancellor is considering doubling every band of the tax.^[2][3]

The North would pay the price

The most striking part of the BGC’s latest figures is where the damage would fall.

Half of all threatened casino closures would be in the North of England and Scotland, putting around 1,900 jobs at risk. A further 20 per cent would be in the Midlands. Only 10 per cent would be in London.

That sits awkwardly with the government’s own message. Healey has said his Budget will move money and power out of Westminster and into every postcode in Britain. 

On the BGC’s numbers, a higher machine tax would do the opposite for casino towns, taking jobs away from the regions most closely tied to Prime Minister Andy Burnham’s devolution agenda.

What is Machine Games Duty

MGD is charged on the net takings from gaming machines that pay out cash prizes, including the slot and roulette machines found in casinos, betting shops, bingo halls and adult gaming centres.^[4] It currently runs at three rates: 5 per cent, 20 per cent and 25 per cent depending on the machine.

The scenario reportedly under discussion would double all three, to 10, 40 and 50 per cent.

For casinos, machines are a major revenue stream. The industry argues that a doubling would make many venues unviable, rather than simply less profitable.

The scale of what’s at stake

According to the BGC, Britain’s casinos directly employ more than 10,000 people and support a further 3,700 jobs, welcome 14 million customer visits a year, contribute £515 million in taxes, and generate £815 million for the wider economy.

The trade body also says more than £50 million of planned investment could be cancelled or scaled back if taxes rise again.

Grainne Hurst, Chief Executive of the BGC, said:  “This is an existential threat to casinos across Britain. We are talking about thousands of hardworking people losing their livelihoods and venues that have served their communities for decades closing their doors for good.”

She added: “Let’s not pretend these casinos will simply be replaced by new businesses. Many former casino sites already stand empty, a stark reminder of what happens when these venues close.

Operators are already sounding the alarm

The BGC’s warning follows a run of individual operator interventions. Rank Group, which owns Grosvenor Casinos and Mecca Bingo, has said a doubling of MGD would force it to close around a third of its casinos and bingo halls in Britain, putting about 2,000 jobs at risk.^[5]

Separate EY modelling commissioned by the BGC estimated that a 40 per cent rate could lead to 34 casino closures alongside up to 1,470 betting shop closures, with almost 16,000 jobs lost across retail gambling. The same modelling claimed the Treasury could end up as much as £124 million worse off.^[6]

Another tax on top of the last one

The casino warning comes against a backdrop of steady pressure on the industry. Remote Gaming Duty on online casino games rose from 21 per cent to 40 per cent in April, and a new 25 per cent remote betting rate within General Betting Duty arrives in April 2027.^[7]

Land-based gambling is also facing a tougher policy climate beyond tax. Burnham has already moved to scrap the “aim to permit” rule for betting shops, giving councils far greater power to block new gambling premises.