Gambling Tax Rise: Will It Shut Shops and Cost Jobs 2026

As the UK government considers a gambling tax rise on high-street slot machines, concerns about shop closures and job losses have sparked a fierce debate. The proposed increase in machine games duty (MGD) from 20% to 40% could raise between £275m and £460m annually, according to the Social Market Foundation. But industry leaders warn it could devastate betting shops and cost thousands of jobs.

What Does the Gambling Industry Say?

The Betting and Gaming Council, an industry lobby group, commissioned a report from EY estimating that a duty rise to 40% could close up to 1,470 betting shops—nearly a third of the total 5,617—resulting in significant job losses. Billionaire Fred Done, owner of Betfred, argues that such a policy would force shop closures, cost jobs, and ultimately fail to raise expected tax revenue.

Who Supports the Tax Rise?

The Social Market Foundation, a think tank, advocates for the rise, arguing it could generate substantial funds for the Treasury. Andy Burnham, a vocal critic of slot machines, has already tightened licensing laws, making it harder for gambling firms to open new shops. Stewart Kenny, co-founder of Paddy Power, accused Done of “scaremongering,” suggesting the industry’s warnings may be exaggerated.

Potential Impact on Jobs and Shops

The debate hinges on whether higher taxes would lead to widespread closures. Industry reports claim up to 1,470 shops could shut, but critics argue that the gambling industry has long warned of doom without evidence. The Treasury collected roughly £610m from MGD last year, and the proposed rise could add hundreds of millions more.

• Proposed MGD increase from 20% to 40%
• Potential annual revenue: £275m-£460m
• Industry estimates: 1,470 shop closures, significant job losses
• Critics argue warnings are exaggerated

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