BGC warns MGD increase could cost 3,800 jobs and close venues
The Betting and Gaming Council has cautioned the government that doubling Machine Games Duty in the Autumn Budget could lead to widespread venue closures and thousands of job losses, with Northern England, Scotland, and the Midlands expected to be hit hardest.
- The BGC warns a potential MGD increase to 40% could put up to 3,800 jobs at risk across the UK.
- Rank Group CEO Richard Harris states a tax hike could force the closure of a third of the company's estate.
- Half of all threatened venue closures would be in Northern England and Scotland, with another 20% in the Midlands.
The Betting and Gaming Council (BGC) has cautioned the UK government that a significant tax increase on gaming machines could result in thousands of job losses and the permanent closure of venues across Britain. The warning comes amid speculation that the Chancellor is considering a substantial rise in Machine Games Duty (MGD) for the next Autumn Budget.
According to the BGC, up to 3,800 jobs in the casino sector are at risk. The industry body’s warning follows rumours that Chancellor John Healey is contemplating doubling the three existing levels of MGD. Such a move could see the top rate increase to 40 per cent.
The potential impact of such a tax hike would be felt disproportionately in certain regions. The BGC projects that half of all threatened venue closures would occur in Northern England and Scotland, with a further 20 per cent of closures concentrated in the Midlands.
Industry leaders condemn potential tax rise
In response to the rumoured changes, prominent figures from the UK’s land-based gaming sector have voiced their concerns. The BGC, led by Chief Executive Officer Grainne Hurst, is spearheading the industry's campaign against what it terms a potential "tax raid".
Richard Harris, CEO of the Rank Group, which operates the heritage Grosvenor and Mecca brands, warned of severe consequences for his company’s estate.
An MGD increase would lead to about a third of the Rank Group's estate having to close.
A similarly stark prediction came from Fred Done, the Founder and Chairman of Betfred.
An MGD rise would cause the death of retail betting by 2030.
Economic contribution under threat
The BGC highlighted the significant economic role of the UK casino sector, which is currently facing uncertainty. Britain’s casinos attract 14 million customers each year and make a substantial financial contribution to the national economy.
Annually, the sector generates £815 million for the UK economy and contributes £515 million in taxes. The BGC argues that a punitive increase in MGD would place this contribution, along with thousands of livelihoods, in jeopardy ahead of the Chancellor's budget decision.
