UK Gambling Operators Seek Restraint on Duty Increases Ahead of October 2026 Budget

Leading UK gambling companies have joined forces through the Betting and Gaming Council to contact Chancellor of the Exchequer John Healey about upcoming changes to betting taxes, and the correspondence arrives weeks before the first Budget scheduled for October 2026. Entain, Flutter Entertainment and Evoke sit among the signatories, along with other BGC members, and the letter urges the government to avoid sharp rises in General Betting Duty and Machine Games Duty. Observers note that the operators reference recent trading pressures while outlining potential further effects on retail locations across the country.

Details of the Industry Letter

The document sets out specific figures from the period since the last Budget, including more than 600 shop closures and 10,250 job losses, and it warns that additional duty increases could accelerate those trends. Companies involved operate both online platforms and high-street betting shops, so the letter covers impacts felt in physical retail as well as digital channels. The BGC coordinates the joint approach, allowing smaller operators to add their names alongside the larger groups named above.

Tax Rates Under Discussion

General Betting Duty currently applies to most forms of betting, while Machine Games Duty covers gaming machines found in betting shops, casinos and arcades. The letter does not propose alternative rates but asks ministers to consider the cumulative effect of any upward adjustments. Those who have reviewed the correspondence report that the operators highlight how duty changes interact with existing cost pressures such as energy bills, staff wages and regulatory compliance spending.

Evidence Cited from EY Analysis

Attached to the letter is a BGC-commissioned EY analysis that models outcomes under a hypothetical 40 percent Machine Games Duty rate. The study projects additional casino and betting shop closures together with a net fiscal loss once reduced employment, lower corporation tax receipts and decreased business rates are taken into account. Data from the report shows how higher machine duty could shrink the taxable base faster than the rate increase adds revenue, and the operators have asked the Treasury to review these projections before final decisions are made.

Timeline Leading to the October 2026 Budget

Chancellor Healey will deliver the Budget later in October 2026, and the letter represents one of the first major industry submissions ahead of that date. Treasury officials typically receive representations from multiple sectors during the pre-Budget period, and the BGC submission arrives alongside similar correspondence from hospitality and retail trade bodies. The timing allows civil servants several weeks to examine the figures before policy measures are finalised.

Operators Named in the Submission

Entain runs Ladbrokes and Coral betting shops as well as online brands, Flutter Entertainment owns Paddy Power and Betfair, and Evoke operates William Hill and 888 brands. Each company maintains both retail and digital operations, so duty changes affect multiple revenue streams simultaneously. The BGC statement confirms that additional members beyond these three have endorsed the letter, although their names remain confidential at this stage.

Potential Outcomes Discussed

The letter stops short of forecasting exact closure numbers under new duty rates, yet it references the EY modelling to illustrate how further tax rises could compound existing pressures. Those who have examined similar past submissions note that governments sometimes adjust duty bands or introduce reliefs for smaller sites when evidence of concentrated impact emerges. The current correspondence therefore supplies both employment data and fiscal modelling for officials to weigh during the remaining weeks before the October 2026 statement.

Conclusion

The joint approach by Entain, Flutter Entertainment, Evoke and other BGC members delivers a single set of figures and analysis to the Treasury ahead of the October 2026 Budget. The letter records 600 shop closures and 10,250 job losses since the previous Budget, and it points to the EY report as evidence that further duty increases on General Betting Duty and Machine Games Duty could produce additional closures alongside net fiscal losses. Treasury consideration of these points will form part of the preparation process leading into the Chancellor’s first Budget statement.