Greg Knight, chief executive of Jennings Bet, has warned that a proposed increase in machine games duty (MGD) could force his company to close nearly half of its 212 betting shops, primarily located in London and the South East. Knight stated that doubling the current tax rate on slot machines to 40 percent would make approximately 100 of these shops financially unsustainable, potentially pushing the company toward liquidation.
The proposed tax hike is under consideration by Chancellor John Healey, who is reviewing whether to raise the MGD, which applies to slot machines in betting shops, adult gaming centres, and casinos. This follows a decision by his predecessor, Rachel Reeves, who last November maintained the existing tax rate on land-based gambling venues but increased the online gaming tax from 21 percent to 40 percent. Many high street betting brands, including Jennings Bet, operate both physical shops and online platforms, meaning that they have already felt the impact of the recent rise in online gaming taxes.
Knight highlighted the company’s recent investment in physical stores, noting that Jennings Bet opened ten new shops last year, investing around £2.5 million and creating 45 new jobs. He expressed frustration at the potential tax increase, arguing that land-based gambling businesses operate under different market conditions than online operators and should be treated distinctly.
Jennings Bet has a longstanding history, tracing its origins to 1961 when the Jennings family began their bookmaking business shortly after licensed betting offices were legalized in Britain. Knight, the grandson of the founders, relaunched the brand in 1995 and has overseen rapid expansion in recent years, with more than 100 new sites opened over the past five years, employing nearly 900 people.
The prospect of a significant MGD rise has prompted widespread lobbying from the gambling sector. Industry leaders, including billionaire Betfred co-founder Fred Done, have echoed Knight’s concerns, warning that increased taxation could lead to extensive closures, job losses, and diminished investment in the sector.
Labour leader Andy Burnham has advocated for measures aimed at revitalizing struggling high streets, including proposals to remove parts of the Gambling Act that restrict local communities' ability to block new bookmakers and slot-machine venues. Knight has voiced support for these changes, suggesting that encouraging local control over gambling outlets is preferable to imposing punitive tax hikes that threaten jobs and economic activity.
A government spokesperson declined to comment directly on the tax increase proposals, stating that decisions on taxation are the chancellor’s prerogative and will be announced at official fiscal events. Until then, speculation around potential changes remains under close scrutiny from both the industry and policymakers.