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BGC Campaign Highlights Human Impact of Tax Hikes and Betting Shop Closures

by Sienna Marques
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BGC Campaign Highlights Human Impact of Tax Hikes and Betting Shop Closures

On Monday, the Betting and Gaming Council (BGC) launched a campaign called "Back Our Betting Shops," which aims to shed light on the potential impacts of impending tax increases and the closures of betting shops on employees, communities, and high streets throughout Britain.

The BGC's initiative is designed to showcase the individuals who work within the industry, ranging from long-term employees and apprentices to managers and customers, as well as community partners. This effort seeks to emphasize that betting shops serve as more than just businesses; they are vital community hubs.

A major theme of the campaign is the warning about the "very real human consequences" that additional tax hikes could impose on workers, their families, local businesses, and the broader community.

In the Prime Minister’s constituency of Makerfield, Grainne Hurst, CEO of the BGC, remarked that it tells a significant story about what betting shops signify for communities across the UK. She stated, "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," Hurst added, referring to betting shops as “community hubs” while urging for public support.

Additionally, the BGC referred to an Opinium poll revealing that 54% of Makerfield residents believe that betting shops have positively influenced local community life. The poll results included diverse political affiliations, with 51% of Labour voters and 59% of Reform voters agreeing.

Central to the campaign is the BGC's objection to a proposed hike in Machine Games Duty (MGD) to 40%. According to modeling by professional services firm EY, such an increase could threaten approximately 16,000 jobs, nearly 1,500 betting shops, and up to 34 casinos, all while leaving the treasury £124 million worse off.

Hurst argued, "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."

Stella David, CEO of Entain, echoed these concerns, warning that raising the MGD rate could lead to widespread shop closures and considerable job losses, potentially reducing government tax revenues.

Fred Done, founder of Betfred, indicated that such a tax increase would compel the company to close 495 shops within a year, resulting in a loss of 2,575 jobs and an estimated £67 million in lost tax revenue for the Exchequer. Earlier this year, Betfred already closed 132 outlets following an increase in Remote Gaming Duty (RGD).

Moreover, just last month, the government announced the repeal of the existing "aim to permit" rule for betting shops and 24-hour slot machine arcades in Great Britain, which eliminated a presumption in favor of granting permissions for such venues.

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