{"id":11501,"date":"2025-11-18T12:20:11","date_gmt":"2025-11-18T12:20:11","guid":{"rendered":"https:\/\/sbceurasia.com\/en\/?p=11501"},"modified":"2025-11-18T12:20:46","modified_gmt":"2025-11-18T12:20:46","slug":"a-gambling-tax-increase-may-worsen-the-situation-for-the-uk-hospitality-industry","status":"publish","type":"post","link":"https:\/\/sbceurasia.com\/en\/2025\/11\/18\/a-gambling-tax-increase-may-worsen-the-situation-for-the-uk-hospitality-industry\/","title":{"rendered":"A Gambling Tax Increase May Worsen the Situation for the UK Hospitality Industry"},"content":{"rendered":"\n<p>The backlash over the widely discussed rise in the <strong>UK gambling tax<\/strong> appears to be felt not only by operators. The already struggling hospitality industry, which relies on gaming machines as a source of revenue, also stands on the brink of trouble.<\/p>\n\n\n\n<p>Sir Tim Martin, the founder of the British pub chain <strong>JD Wetherspoon<\/strong>, told <strong>The Times<\/strong> that raising the <strong>Machine Gaming Duty (MGD)<\/strong> <strong>from 20% to 50%<\/strong> would create serious concerns for the hospitality sector.<\/p>\n\n\n\n<p>The 50% figure for MGD appears in a report by the think tank Institute for <strong>Public Policy Research (IPPR)<\/strong>. The institute has also called for the online slots tax to be increased from <strong>21% to 50%<\/strong>, for the general betting duty imposed on bookmakers to rise from <strong>15% to 25%,<\/strong> and for general betting duty rates and the horse racing betting levy to remain at <strong>15% and 10%<\/strong> respectively. The IPPR proposal has been supported by former UK Prime Minister Gordon Brown as a way to tackle child poverty.<\/p>\n\n\n\n<p>It is expected that Chancellor <strong>Rachel Reeves<\/strong> will include a gambling tax increase in next year\u2019s budget, which the Labour government will present on <strong>26 November.<\/strong> However, it is not yet known which specific tax rates will be raised.<\/p>\n\n\n\n<p>The Times notes that if the IPPR\u2019s proposed MGD figures are applied, <strong>Wetherspoon\u2019s<\/strong> gambling duty liabilities would rise <strong>from around \u00a327.5m to \u00a345.7m<\/strong> for the past year. Based on current gambling revenues, Martin said that the chain\u2019s total post-tax profits would fall by 48%.<\/p>\n\n\n\n<p>Although Wetherspoon\u2019s gaming machine revenue increased by 11% in 2024 compared to the previous year, Martin said that these machines account for a smaller share of overall sales than in previous years. However, Martin\u2019s comments against the tax increase are only part of the broader pushback from the gambling industry in recent months.<\/p>\n\n\n\n<p><strong>Rank Group<\/strong> CEO <strong>John O\u2019Reilly<\/strong> said in October that the company is paying its \u201cfair share\u201d of tax.<\/p>\n\n\n\n<p>In its report for the first quarter of the 2025\/26 financial year (1 July &#8211; 30 September), O\u2019Reilly expressed confidence in the year ahead. He also noted that Rank and the Treasury are in discussions about how a tax rise may affect the company\u2019s operations.<\/p>\n\n\n\n<p>The Chief Executive said: \u201cSpeculation regarding tax changes in the upcoming budget is, inevitably, hanging over the business. We are engaged with the Treasury on the implications of tax changes on the viability of our venues, employment levels, future investment and the customer.&nbsp;<\/p>\n\n\n\n<p>\u201cLast year the group generated \u00a344.6m in profit after tax, having paid <strong>HMRC<\/strong> and local authorities \u00a3188m in taxes. The <strong>Rank Group<\/strong>, with its strong UK focus, is certainly paying its fair share.\u201d<\/p>\n\n\n\n<p>The<strong> Betting and Gaming Council (BGC) <\/strong>has also opposed the tax increase. A report by <strong>PricewaterhouseCoopers (PwC)<\/strong>, commissioned by the BGC, analysed European markets that have taken similar steps.<\/p>\n\n\n\n<p>The report noted that a tax rise could lead to higher prices for operators and cuts in marketing and bonuses. This, in turn, could negatively impact the rate of channelisation into the regulated sector, with some players turning to unlicensed operators.<\/p>\n\n\n\n<p>BGC CEO <strong>Grainne Hurst<\/strong> also spoke out against raising gambling taxes during a Treasury Committee hearing in October.<\/p>\n\n\n\n<p>Hurst said: \u201cThe industry has a lot of regulations in place voluntarily and the white paper to raise those standards. We track behavioural triggers, late-night play, chasing losses, so we make sure players are staying within the regulated space.\u201d<\/p>\n\n\n\n<p>However, the committee did not seem persuaded by the industry\u2019s arguments and remained sceptical of the BGC-commissioned research. Mainstream media have also sharply criticised the standards body for defending the industry &#8211; particularly for its persistent denial of gambling\u2019s role in causing social harm.<\/p>\n\n\n\n<p>Stakeholders in the gambling and hospitality industries now have just over a week to find out exactly how the draft budget will affect their operations.<\/p>\n\n\n\n<p>Don\u2019t forget to subscribe to our <a href=\"https:\/\/t.me\/sbceurasia\">Telegram channel<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The backlash over the widely discussed rise in the UK gambling tax appears to be felt not only by operators. The already struggling hospitality industry, which relies on gaming machines as a source of revenue, also stands on the brink of trouble. Sir Tim Martin, the founder of the British pub chain JD Wetherspoon, told [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":11502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[5,1,24],"tags":[2693,400,46,14210,10123,10121,14636,14635,14630,14638,14632,14634,10124,8898,14631,14633,160,398,14637],"class_list":{"0":"post-11501","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-gambling","8":"category-news","9":"category-regulations","10":"tag-betting-and-gambling-council","11":"tag-bgc","12":"tag-gambling","14":"tag-institute-for-public-policy-research","15":"tag-ippr","16":"tag-jd-wetherspoon","17":"tag-john-oreilly","18":"tag-machine-gaming-duty","19":"tag-mgd","20":"tag-pricewaterhousecoopers","21":"tag-pwc","22":"tag-rachel-reeves","23":"tag-rank-group","24":"tag-sir-tim-martin","25":"tag-slot-machine-tax","26":"tag-taxes","27":"tag-uk","28":"tag-wetherspoon"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Gambling Tax Increase May Worsen the Situation for the UK Hospitality Industry - SBC EURASIA EN<\/title>\n<meta name=\"description\" content=\"The backlash over the widely discussed rise in the UK gambling tax appears to be felt not only by operators. 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