BGC highlights human cost of betting shop closures and tax rise with new campaign

On Monday, the Betting and Gaming Council (BGC), initiated a campaign titled “Back Our Betting Shops” aimed at highlighting the potential consequences of further tax rises and shop closures on employees, communities and high streets across Britain.

The BGC’s campaign seeks to profile individuals working in the industry, from long-serving employees and apprentices to managers and customers, as well as community collaborators. 

It is intended to highlight the role betting shops play as local community hubs beyond mere business establishments.

A key message of the campaign is the warning of “very real human consequences” that could result from additional tax increases, impacting workers, their families, local businesses and wider communities. 

Betting shops are ‘community hubs’

Makerfield is the prime minister’s constituency and he uses it as a bellwether for his policies. Grainne Hurst, chief executive of the BGC, said that “Makerfield tells a very human story about what betting shops mean to communities across Britain.

“The prime minister has said policies should face a ‘Makerfield test’ that if they don’t work for people here and don’t lift them up, they shouldn’t happen at all.

“Behind every betting shop is a team of real people earning a living, supporting their families and playing a part in their local community,” she added. She further described betting shops as “community hubs” and appealed for public backing.

Additionally, the BGC cited data from an Opinium poll that found 54% of Makerfield residents said betting shops had contributed to local community life.

Notably, the respondents represented a mix of political alignment including 51% of Labour voters and 59% of Reform voters. 

MGD rise and risk

Central to the campaign was opposition to a proposed increase in Machine Games Duty (MGD) to 40%. The BGC cited modelling by professional services firm EY, suggesting such a tax increase could endanger up to 16,000 jobs, nearly 1,500 betting shops and up to 34 casinos, while paradoxically leaving the treasury about £124 million worse off.

“Further tax rises risk inflicting exactly the kind of damage communities like Makerfield are worried about and raise serious questions about whether such a policy would pass the prime minister’s own Makerfield test,” said Hurst.

Entain CEO Stella David also cautioned that doubling the current MGD rate to 40% could result in widespread closures of betting shops and significant job losses, while potentially reducing tax revenues for the government. 

Betfred’s Fred Done said such a tax rise would lead Betfred to close 495 of its shops within a year, resulting in the loss of 2,575 jobs and roughly £67 million in foregone tax revenue for the Exchequer.

Betfred has already shuttered 132 outlets this year, following last year’s RGD increase.

Additionally last month, the government said it would repeal the established “aim to permit” rule for betting shops and 24-hour slot machine arcades across Great Britain, removing a presumption in favour of granting permission for such venues.