A Survation poll found that 96% of Labour members support higher gambling taxes, adding to pressure on Chancellor John Healey as he considers doubling Machine Games Duty (MGD) from 20% to 40%.
The findings come ahead of the first Budget of the Burnham premiership, due on Wednesday 28 October. The proposed MGD increase has become a point of contention, with Labour MPs seeking higher taxes on gaming machines and operators warning of consequences for high street businesses.
Political support and industry warnings
The poll, conducted for LabourList, an independent Labour-supporting news website and daily newsletter, found particular support for higher taxes on adult gaming centres. The party’s grassroots also back PM Andy Burnham’s campaign to clean up UK high streets by tackling what it describes as unsociable businesses, including bookmakers, arcades and vape shops.
Ninety Labour MPs have urged Healey to introduce a higher tax rate for Category B machines, which are used in betting shops, adult gaming centres, bingo halls and casinos.
Executives from Entain, Flutter UK and Ireland, bet365, evoke and Betfred have jointly urged the Chancellor to rule out another gambling tax increase. Operators argue that a higher burden could lead businesses to reduce their estates, cut jobs and ultimately weaken Treasury receipts.
An open letter from Entain referred to industry-commissioned EY modelling that projected a 40% MGD rate could lead to as many as 1,470 betting shop closures and 15,900 job losses. Those figures are projected outcomes, not announced cuts. The Betting and Gaming Council has separately warned that casino closures and lower receipts from other taxes could leave the Treasury up to £124m worse off.
Other tax proposals and Flutter
The poll also found that 90% of Labour members backed a banking windfall tax, while 84% supported a 2% wealth tax on assets above £10m. LabourList editor Emma Burnell said members wanted those with the “broadest shoulders” to contribute more towards public services.
The Budget is also being watched in London and Dublin as Dan Taylor takes over as Group CEO of Flutter Entertainment. Taylor warned the group’s UK and Ireland team of planned job cuts in an email sent at 8am yesterday.
The proposed reductions would affect a workforce of around 9,000 as the NYSE-listed gambling group’s new leadership team reviews corporate costs and prioritises capital expenditures.
