Would a gambling tax rise in the budget really shut shops and cost jobs?
The UK's gambling industry is pushing back against reports that Chancellor John Healey will double the tax on slot machines in his first budget, claiming the measure would force shop closures and cost thousands of jobs. The Social Market Foundation estimates the tax rise could generate between £275m and £460m annually, with Andy Burnham among prominent supporters of the policy who have pushed for tighter regulation on bookmakers. However, there is considerable scepticism about the credibility of industry predictions.
Betfred owner Fred Done and other major operators warn the duty rise could force the closure of nearly a third of betting shops, eliminate 15,900 jobs and deprive the Treasury of £120m. Yet the article reveals that Betfred threatened to close nearly 1,000 shops in response to previous regulations but has actually closed only about 330 since 2019, whilst the Done family has taken out tens of millions of pounds in dividends. Other firms like Bet365 have attributed job cuts to tax increases whilst simultaneously expanding artificial intelligence use, suggesting broader corporate cost-cutting may be at play beyond regulatory concerns.
- UK gambling industry warns doubling slot machine tax would close shops and cost jobs.
- Social Market Foundation estimates rise could generate £275m-£460m annually.
- Bookmakers' track record suggests closure predictions may be exaggerated.
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The UK government is considering doubling the tax on betting shop slot machines as part of its upcoming budget. This tax change is being explored as a way to regulate the gambling industry more tightly, with supporters including Andy Burnham arguing it would help tackle problem gambling.
Major gambling operators say the tax increase would be damaging. Betfred and other large firms claim it could force the closure of nearly a third of all betting shops and cost thousands of jobs, though the Social Market Foundation estimates the tax could raise between £275m and £460m annually.
There is considerable scepticism about these industry predictions, as Betfred previously warned it would close nearly 1,000 shops in response to earlier regulations but actually closed only about 330 since 2019. Major gambling firms have simultaneously announced job cuts while expanding in artificial intelligence, raising questions about whether predicted losses would truly be caused by tax changes alone or reflect broader business decisions.