Betting CEOs urge Chancellor to avoid gambling tax increases

CEOs from major betting companies in UK, have urged the Treasury head John Healey, to rule out the gambling duty taxes as the new Budget announcment will come on 28 October. The executives warn that higher taxes will lead to more shop closures and job cut in the whole country. According to the Betting and Gaming Council (BGC), the CEOs of member companies have communicated with Healey regarding their opposition to raising gambling duties and the plan to raise the Machine Games Duty (MGD) from 20% to 40%. The executives have urged that the planned increase in General Betting Duty (GBD) tax that is slated for April 2027 be put on hold. They believe that all future increases in tax should only occur after effects of previous tax increases are taken into account. The letter was signed by executives from Entain, bet365, Bally’s Corporation, Evoke, Betfred, and Flutter UK & Ireland. Industry warns of closures and job cuts The BGC claims that more than 600 betting outlets have shut and over 10,250 jobs were lost or warned to be lost. Prominent firms such as Betfred, William Hill, Entain, bet365, and Paddy Power announced layoffs or closures of their betting shops, as they have been hit by greater taxes and the worsening economy. The council also provided evidence that according to the data provided by the UK Gambling Commission, the number of betting shops in Great Britain has dropped by 38%. The BGC specified that the potential consequences of the situation can lead to the funds loss of up to £124 million (€146.8 million) for the Treasury. British horseracing can also suffer from at least £40 million (€47.3 million) loss due to lower levy and media-rights payments. Separately, the analysis completed by Regulus Partners shows that the horseracing sector can experience £92 million (€108.8 million) annual losses, provided that the rate of MGD is increased to 40%. The industry’s appeal comes as operators await the government’s next Budget and the potential consequences for Britain’s betting and gaming sector.