Rachel Reeves warned 'brutal' gaming machine tax hike could wipe out 3,800 casino jobs and shut 34 venues

The Night Time Industries Association, in a report modelled by consulting firm EY, warns that doubling Machine Games Duty from 20% to 40% ahead of the Autumn Budget could put 3,800 jobs and 34 casino venues at risk. The Social Market Foundation has suggested the hike could raise around £450 million, but industry figures say the human cost has been drastically underestimated. Britain's 108 licensed casino premises employ around 14,000 people in total, meaning the proposed change could devastate more than a quarter of the entire workforce.

The tax rise would also threaten £100 million of planned investment and wipe out £73 million of existing tax receipts.

Casino and bingo operator Rank Group, which owns Mecca Bingo and Grosvenor Casinos, says up to a third of its venues may be forced to shut, putting around 2,000 workers at risk.

Joe Brown of Metropolitan Mayfair says the 'biggest issue is the cumulative effect of regulation, taxation, employment costs and banking restrictions rather than any single measure.'