UK industry warns Machine Games Duty rise could weigh on gambling jobs and hiring ahead of budget

With the UK budget due in about 24 hours, industry figures have voiced concern over the employment impact of an expected rise in Machine Games Duty (MGD). Chancellor John Healey is reportedly considering lifting the standard MGD rate from 20% to 25%, while the Social Market Foundation think tank has called for a sharper increase.

Peter Hannibal, Chief Executive Officer of the Gambling Business Group, which represents retail operators including betting shop companies, said the sector is no different from others. He noted that it has already absorbed higher national insurance contributions and energy costs, and that uncertainty over tax means few businesses want to invest until the outlook is clear.

Caroline Butler, Director of the TalentThrive advisory, said her main worry is the longer-term effect on recruitment, workforce investment and the UK's competitiveness as a gaming employment market. She argued that pressure on margins does not always lead straight to redundancies. Early signs are often subtler: vacancies go unfilled, recruitment budgets shrink, expansion plans are delayed and teams are asked to do more with less. She expects operators with large retail exposure to feel this most.

Alastair Cleland, Group Managing Director of Conxesus Group, said additional pressure would fall particularly on high-street betting shops and land-based businesses, where machine revenue is central to the commercial model. He pointed to the cumulative effect of several cost increases, including wages and property costs, which leave operators fewer ways to protect margins and bring shop closures and staffing levels into sharper focus. Reports ahead of the budget suggest the National Living Wage for those aged 21 and over will rise from £12.71 to £13.20.

The Betting and Gaming Council says doubling the standard MGD rate would cost 3,800 jobs. Flutter Entertainment has attributed the loss of more than 1,400 jobs across its business to the April increase in Remote Gaming Duty. Butler cautioned against linking Flutter's announcement directly to a prospective MGD rise, given existing tax changes, but said it shows how taxation and operating costs are shaping workforce decisions across the sector.

Employment has become a leading theme in betting industry lobbying this year, with Betfred founder Fred Done and Entain CEO Stella David among those raising it publicly, after earlier campaigns focused on the black market failed to gain traction.