The UK government is considering doubling Machine Games Duty rates on betting-shop gaming machines ahead of the Autumn budget. The industry warns of mass closures.
Sources say Prime Minister Andy Burnham's cabinet may raise the lower MGD band from 5% to 10%, the standard rate from 20% to 40%, and the higher rate from 25% to 50%. In response, the Betting and Gaming Council launched the Back Our Betting Shops campaign to defend retail outlets.
Fred Done, founder of Betfred — the largest chain with over 1,300 shops — told the Financial Times that under such a scenario betting shops would disappear from British high streets by 2030. Stella David, CEO of Entain (which operates Ladbrokes Coral), wrote to Burnham citing the shops' role as employers and community anchors.
Both operators have already cut their networks this year: Betfred closed around 10% of shops over the summer, Entain shut several offices in Ireland. William Hill (evoke) and Paddy Power (Flutter Entertainment) have also pulled back from retail.
Grainne Hurst, chief executive of BGC, said: "Behind every betting shop are real people earning a living. Thousands of shops have already closed, thousands of jobs lost. New taxes mean more empty storefronts and lost income."
Reform advocates include Gordon Brown, who called a year ago for higher online gambling taxes, and the Social Market Foundation think tank. Burnham announced plans over the weekend to create an NHS-style social care system, which will require tax increases. The gambling sector is seen as a convenient target for raising revenue — less public backlash than other levies.
