Nearly 3,000 Under 25s Could Lose Their Jobs in MGD Hike

The Prime Minister, Andy Burnham, has made youth unemployment and employability a key focus in his early days at 10 Downing Street.

But he could be about to shoot himself in the foot if he proceeds with the rumoured Machine Games Duty hike, which could be increased to 40% in the chancellor’s Autumn Budget - revealed on October 28 - is as predicted.

Industry analysis has revealed that between 11,600 and 15,900 jobs could be lost as a result of venue closures emanating from the MGD hike.

And with around one-in-four employees in these establishments aged under 25, many of whom will be in their first jobs post-school or college, that equates to around 2,900-3,975 young people that are vulnerable to redundancy.

More Than 10,000 Jobs Lost Already

The Betting and Gaming Council (BGC) has written a letter, undersigned by senior officials at Entain, Flutter, Betfred and William Hill, to the chancellor, John Healey, revealing their concern at the damage a 40% rate of MGD would cause to the industry.

Since the catastrophic Autumn Budget of 2025, which nearly doubled the rate of tax paid by operators on online casino games (Remote Gaming Duty, RGD), more than 600 betting shops have been closed in the UK – for the loss of 10,250 jobs.

Although the duty paid on retail sports bets was frozen, the new tax regime still hurt the finances of betting firms considerably; many of the major industry players are multi-channel operators.

One of the ways that they sought to mitigate the impact of the tax increases was to close their betting shops that previously broke even or made a marginal profit.

And if MGD is hiked, more shops – which rely on games machines as a key source of revenue – will be closed as a necessity.

Further Costs to Communities and the Economy

According to research commissioned by the BGC, the 40% MGD rate would lead to a raft of further betting shop closures – between 690 to 1,470 has been modelled – as well as around 30 casinos to close their doors permanently.

And that would equate to mass job losses, which the research suggests would be between 11,6000 to 15,900, depending upon the number of closures.

Around a quarter of the shops and a third of the casinos would be shut in the north of England, with around half of the betting shops in Makerfield – the Prime Minister’s beloved constituency – expected to close.

The loss to the UK economy of these closures? A cool £124 million, according to the figures.

Young People Impacted

When you consider the demographics of betting shop employees, the reality of tax hikes hits home.

More than 36,000 people work in high street betting shops, with more than 50% of those women. Around 25% of employees are under the age of 25, which reveals why the retail sector is so important to providing employment opportunities for a generation that seemingly has fewer to call upon in the age of automation and AI.

Many jobs in betting shops are also part time, which offers parents and family members to juggle childcare and work.

The Prime Minister has bemoaned the lack of opportunities for young people in the UK, stating that around one million people aged 18-24 are considered to be ‘NEET’ – Not In Education, Employment or Training.

Tax Break

As well as asking the chancellor to reconsider his MGD grab, the UK’s biggest betting brands have also called on Healey to pause the rollout of the General Betting Duty (GBD) hike, which is scheduled for April 2027.

Industry stakeholders want him to wait ‘until the full impact of the RGD rise on jobs, investment, customers and tax receipts has been properly assessed.’

“The Treasury should have the opportunity to understand the consequences of one major tax increase before another takes effect,” the letter reads.