UK casino jobs at risk if Machine Games Duty rises to 40%

The Betting and Gaming Council (BGC) and the Night Time Industries Association (NTIA) have warned that increasing the Machine Games Duty (MGD) to 40% could jeopardize thousands of jobs in the British casino sector.

Currently, operators typically pay a 20% tax on profits from gaming machines. Research by the NTIA, utilizing modelling from EY, suggests that raising the levy to 40% could put approximately 3,800 jobs and 34 casinos at risk. The report also indicates that such a move could threaten £100 million in planned investment and £73 million in tax receipts.

The Social Market Foundation has previously noted that the government could increase tax revenues by roughly £450 million through this increase. Industry representatives are urging the government to consider the cumulative impact of taxation on employment, capital investment, and local economic activity rather than focusing solely on direct tax yields.