The prospect of a significant increase in gambling taxes has raised concerns over its potential impact on young people’s employment opportunities, with industry leaders warning that first jobs could be at risk. The UK government is reportedly considering doubling the duty on betting shop machines to 40 percent, a move that critics say could lead to widespread closures and job losses across the sector.

Entain chief executive Stella David, whose company operates more than 2,300 Ladbrokes and Coral betting shops and employs over 13,000 people in Britain, cautioned that higher taxes would jeopardize the chances for many young workers to gain initial employment and develop skills. David emphasized that betting shops play a vital role in supporting local high streets and providing career pathways, especially for younger staff. According to the Betting and Gaming Council (BGC), one in four betting shop employees is under 25, with 54 percent under 35, and half of the workforce women, many of whom balance work with family responsibilities.

The BGC has highlighted the potential consequences of the proposed tax increase, citing analysis by the business advisory firm EY which suggests that raising machine games duty to 40 percent could result in the closure of approximately 1,470 betting shops and 34 casinos. This would put nearly 16,000 jobs at risk and could reduce government revenues by up to £124 million. The concern extends beyond London, with over 80 percent of betting shops located outside the capital, including strong clusters in the north of England and Scotland, regions where job opportunities can be limited.

Meanwhile, government figures indicate significant challenges for young people in the labour market. Recent data from the Department for Work and Pensions show that in May, 681,000 individuals aged 16 to 24 were unemployed and claiming Universal Credit. Additionally, nearly one in eight people under 25—around 981,000—are classified as NEET (not in education, employment, or training). Former Labour minister Alan Milburn, who is leading a review into the NEET crisis, estimates the annual cost of youth disengagement to taxpayers at £125 billion and describes the current support system as “morally indefensible.” His interim report warns that without more focused investment, the NEET rate could exceed 16 percent within five years.

Milburn’s findings also highlight a significant imbalance in government spending, suggesting that for every £1 spent on employment support for young people, £25 is directed towards benefits payments. The financial impact for a young person who has not gained employment by age 24 is substantial, with lifetime earnings potentially reduced by up to £300,000.

In response to these challenges, a campaign has been launched to promote job creation and work experience opportunities for young people. The initiative encourages employers and volunteers to provide apprenticeships and entry-level positions to help address the growing youth unemployment crisis.

The government has stated its commitment to reducing worklessness through increased public investment and welfare reforms. A spokesman said the administration is focused on enabling economic growth, supporting infrastructure development with a £120 billion investment, and reforming the welfare system through measures such as narrowing the gap between Universal Credit standard and health rates. Furthermore, the government has pledged to invest £3.5 billion in employment support programmes.

As discussions continue ahead of the forthcoming Budget, industry advocates and public officials alike stress the importance of safeguarding employment prospects for young people, particularly in sectors seen as entry points to the labour market.