Betting Sector Sends Urgent Warning to Chancellor on Machine Games Duty Proposals

The Betting and Gaming Council delivered a letter on behalf of major operators including those behind Ladbrokes, Paddy Power, Bet365, Betfred and William Hill directly to Chancellor John Healey, and the document outlines specific risks tied to lifting Machine Games Duty from its current level to 40 percent. Observers note that the communication arrives weeks before the October 28 Budget, and it references both the scale of projected closures along with the timing of an earlier Remote Gaming Duty adjustment scheduled for April 2026.

Details of the Industry Communication

The letter states that the proposed Machine Games Duty rise could produce between 690 and 1,470 additional betting shop closures plus 28 to 34 casino closures, while employment figures show a potential loss of 11,600 to 15,900 positions across the sector. Those figures come from a BGC-commissioned EY analysis that models the combined pressure of multiple duty increases, and the same document records more than 600 shops and 10,250 jobs already eliminated since the previous budget round.

Industry representatives argue that further tax adjustments, including the planned General Betting Duty increase, should be paused until the full market effects of the April 2026 Remote Gaming Duty change from 21 percent to 40 percent become clear. The Remote Gaming Duty adjustment targets online operators, and the letter emphasizes that operators need time to absorb that shift before additional onshore duties are applied.

Context of Recent Sector Contractions

Data collected by the Betting and Gaming Council shows steady contraction in the high-street estate over the past two years, and the latest projections build on that trend by forecasting how an elevated Machine Games Duty rate would accelerate the pace of closures. teh analysis separates the impact on traditional betting shops from the parallel effect on casino venues, and it presents ranges rather than single-point estimates to reflect different operating scenarios across the five major groups.

Executives from the named operators coordinated their message through the BGC rather than issuing separate statements, and the unified approach highlights the shared exposure to machine-based gaming revenue that funds a significant portion of high-street operations. The letter notes that many remaining locations operate on thin margins, and any further reduction in net revenue after duty would render additional sites unviable.

Requests Made Ahead of the October 28 Budget

The communication asks the Treasury to delay the General Betting Duty increase and any other new levies until the April 2026 Remote Gaming Duty rise has been fully implemented and its consequences measured. The timing of the request aligns with the final stages of Budget preparation, and the industry group supplied the EY modelling to support the case for sequencing the changes.

Figures released alongside the letter indicate that the combined duty increases already enacted or announced have contributed to the earlier wave of 600-plus shop closures and more than 10,000 job reductions. The BGC letter therefore frames the 40 percent Machine Games Duty proposal as the next incremental step that would compound those losses rather than an isolated adjustment.

Conclusion

The letter delivered to Chancellor John Healey sets out quantified projections for betting shop and casino closures along with associated employment effects if Machine Games Duty moves to 40 percent. It also records the sector's request to sequence future tax changes after the April 2026 Remote Gaming Duty adjustment has taken effect, and it places those points before the Treasury in the weeks leading to the October 28 Budget. The information contained in the BGC submission draws directly on the EY analysis commissioned by the council and on employment and premises data compiled since the prior fiscal statement.