Bookies in last-ditch plea to Healey to avert budget tax bombshell

Britain's biggest bookmakers are stepping up their efforts to avert a budget tax bombshell in a last-ditch letter warning that half of the betting shops in the prime minister's constituency would be at risk from a further raid.

Sky News has obtained a letter sent to John Healey, the chancellor, by the Betting and Gaming Council (BGC) earlier this week and backed by the sector's biggest employers.

Signed by the bosses of Ladbrokes' parent Entain, Flutter, which owns Paddy Power, Bet365, Betfred and the parent company of William Hill, it provides the starkest industry-wide alert so far of the potential impact of a budget rise in Machine Games Duty (MGD).

The letter, which was sent only two weeks before Mr Healey's inaugural budget, follows a string of individual warnings, including from Betfred's founder, Fred Done, in which he threatened to close his entire betting shop estate.

"Betting and gaming are woven into Britain's cultural and sporting life," the bosses told Mr Healey.

"From a flutter on the Grand National to a trip to the bingo hall or casino, millions of adults enjoy betting and gaming as part of their leisure time."

They said their industry had supported 109,000 jobs and generated more than £4bn in tax revenues prior to last year's budget, which was delivered by Rachel Reeves.

However, they warned that the closure since then of more than 600 shops and the loss of 10,250 jobs provided a foretaste of the potential consequences of a further raid on the sector.

They said it was already contending with the impact of a near-doubling of Remote Gaming Duty (RGD) from 21% to 40% this year, and urged Mr Healey to pause a further increase in General Betting Duty (GBD) on most remote betting activity to 25% next April "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 companies said.

The gambling bosses said the impact of a further tax raid would be felt particularly in local areas where betting shops serve as community hubs.

"BGC-commissioned EY analysis estimates that a 40% [MGD] rate could result in a further 690 to 1,470 betting shop closures, 28 to 34 casino closures and 11,600 to 15,900 job losses.

"33% of casino closures and 23% of betting shop closures would be in the North of England.

"For a constituency like [the PM's constituency] Makerfield, half of its local venues would shut.

"Crucially, these factors combined would create a net loss to the exchequer of up to £124m once you account for losses from other taxes."

Makerfield is understood to have nine betting shops, five of which would be at risk of closure, according to the BGC.

Mr Burnham has angered gambling industry executives since coming to power, questioning the social value of bookmakers.

"At this budget, we therefore urge you to rule out further increases in gambling duties, including any increase in MGD, and to pause the planned GBD increase in April 2027 until the impact of the tax rises already introduced has been fully assessed," the executives told Mr Healey.

The letter was signed by Stella David, chief executive of Entain; Kevin Harrington, chief executive of Flutter UK & Ireland; John Coates, joint group chief executive of bet365; Robeson Reeves, CEO of Bally's Corporation; Per Widerström, who runs Evoke; and Joanne Whittaker, Betfred's chief executive.

(c) Sky News 2026: Bookies in last-ditch plea to Healey to avert budget tax bombshell