BGC Opposes 40% Gaming Machine Tax Proposal Backed by UK MPs

The Betting and Gaming Council (BGC) has criticized a proposal to raise the UK’s Machine Games Duty (MGD) to 40%. The plan is supported by 90 Labour MPs who signed a letter organized by Labour MP Alex Ballinger.

The proposed tax increase would affect Category B gaming machines and comes ahead of the upcoming Autumn Budget.

Grainne Hurst, CEO of the Betting and Gaming Council, stressed:

MPs are right to be concerned about protecting communities and high streets, but it is deeply misguided to suggest that higher taxes on betting shops and casinos will achieve that.

Hurst referred to Ernst & Young modelling that suggests a 40% MGD rate could lead to another 1,500 betting shop closures and 34 casino closures. Up to 16,000 jobs could be lost, while the Treasury could receive £124 million less in revenue.

She also noted that more than 600 betting shops have already closed or announced closures since previous gambling tax increases were announced.

Bacta, another UK gambling industry trade body, has also spoken against the proposal. Its Director of Communications, Allaster Gair, raised concerns about the possible impact on coastal tourism and entertainment businesses.

The proposed tax increase remains under discussion ahead of the Autumn Budget.