‘Tax on Jobs’: Betting Bosses and Hospitality Leaders Unite Against Hike

_{London is the hub for UK Casinos and a huge economy booster. (Image: Alan Evans/Casinos.com)}

The UK’s Betting and Gaming Council (BGC) has warned that proposed gambling tax increases could cost the economy up to £3.1 billion and wipe out 40,000 jobs across the sector.

The warning comes from a new report by EY-Parthenon commissioned by the BGC, ahead of the government’s November budget. The report, Impacts of Changes to Betting and Gaming Regulation, found that aligning tax rates or raising them sharply would drive players toward the black market, cutting revenue instead of raising it.

Billions at Risk, Jobs on the Line

EY’s analysis explored four possible tax scenarios affecting betting, online gambling, and machine gaming duties. Even moderate tax rises could shrink industry gross value added (GVA) by hundreds of millions, while more extreme proposals, like those suggested by the Institute for Public Policy Research, could slash £3.1 billion in value and erase 40,000 jobs.

_{Casinos in central London. (Image: Alan Evans/Casinos.com)}

BGC chief executive Grainne Hurst said the data show that further tax rises would be a “direct threat” to UK jobs and growth.
“Figures speak for themselves,” Hurst said. 

“Tens of thousands of jobs lost, billions diverted to the black market and a possible £3 billion hit to the economy.”

She urged the government to “back a successful, sustainable, regulated British industry – or risk losing jobs, investment and growth.”

Retail and Hospitality Hit Hard

Major betting operators have already warned that any rise could force shop closures. William Hill could shutter up to 200 high-street locations, while Flutter plans to close 57 Paddy Power shops. Entain has also said its UK outlets may close to offset rising costs.

The impact would ripple beyond gambling. Martin Wolfstecroft, speaking on BBC News for UKHospitality, said the wider hospitality sector “pays more tax than any other industry” and needs “a fairer tax system to support the heartbeat of our society.”

He called for:
    •    Reduced VAT: The UK’s hospitality VAT rate is among the highest in Europe.
    •    Fairer business rates: To support investment in high streets and communities.
    •    Lower national insurance contributions:

 “It’s a tax on giving someone a job,” Wolfstencroft said, urging measures that help recruit and retain staff.

Ryan Livingstone, who manages Horizons Casino in Leicester Square, said: 

“As an operator in Leicester Square I see daily how the current tax burden is impacting hospitality and the night-time economy.”

The West End’s night-time economy is valued at around £14 billion a year, and the UK’s wider night-time economy generates over £136 billion in annual consumer spend. This sector fuels tourism supports hundreds of thousands of jobs and keeps London’s heartbeat alive long after the 9-to-5. Livingstone said: 

“Hospitality isn’t a fringe player; it’s an economic powerhouse. It’s time to back it properly.”

_{Ryan Livingstone (r) recognises casinos make to the economy. (Image: Alan Evans/Casinos.com)}

Horizons Casino is just one of a number of casinos catering for Londoners and tourists around the popular area of Leicester Square and Soho.

Livingstone said: “We’re not asking for handouts,”  

“We’re asking for fairness. A sensible VAT structure, realistic business rates and lower NI contributions would give operators the breathing space to reinvest, grow and keep the West End thriving.”