Home Gambling Industry InsightsBGC Campaign Highlights Human Impact of Tax Increases on Betting Shops

BGC Campaign Highlights Human Impact of Tax Increases on Betting Shops

by Sienna Marques
1 views 3 minutes read
BGC Campaign Highlights Human Impact of Tax Increases on Betting Shops

On Monday, the Betting and Gaming Council (BGC) launched its "Back Our Betting Shops" campaign to shed light on the potential repercussions of tax increases and betting shop closures on employees, communities, and high streets throughout Britain.

The campaign aims to showcase the experiences of individuals involved in the betting industry, including long-standing employees, apprentices, managers, and customers, as well as members of the community who collaborate with these establishments. It seeks to underscore the significance of betting shops as local hubs, emphasizing their role beyond simple business operations.

A central message of the campaign warns of the "very real human consequences" that could arise from further tax hikes, which would affect not only workers and their families but also local businesses and entire communities.

Grainne Hurst, chief executive of the BGC, pointed to Makerfield, the prime minister's constituency, as a case study for understanding the social impact of betting shops. "Makerfield tells a very human story about what betting shops mean to communities across Britain," Hurst remarked, noting the prime minister's assertion that policies should undergo a 'Makerfield test' to ensure they are beneficial to local populations.

"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, advocating for public support for the industry.

According to data from an Opinium poll, 54% of Makerfield residents acknowledged that betting shops contribute positively to local life, with support spanning various political affiliations, including 51% of Labour voters and 59% of Reform voters.

The campaign also strongly opposes a proposed raise in Machine Games Duty (MGD) to 40%. The BGC highlighted research by professional services firm EY, which indicated that such a tax hike could jeopardize approximately 16,000 jobs, close nearly 1,500 betting shops, and affect up to 34 casinos, potentially costing the treasury about £124 million in lost revenue.

Hurst commented, "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, expressed concern that increasing the MGD rate to 40% could lead to widespread closures of betting shops, significant job losses, and ultimately reduce government tax revenues.

Fred Done of Betfred warned that a tax rise would force the closure of 495 Betfred shops in one year, leading to a loss of 2,575 jobs and an estimated £67 million in lost tax revenue for the Exchequer. Betfred has already closed 132 of its outlets this year following last year’s increase in Remote Gambling Duty (RGD).

In a related move, the government announced last month the repeal of the "aim to permit" rule for betting shops and 24-hour slot machine arcades across Great Britain, which removes the presumption that permissions should be granted for these venues.

You may also like