Machine games duty in the UK could rise to 25 percent

The UK government is reported to be preparing to raise Machine Games Duty (MGD) on category B gaming machines from 20 percent to 25 percent in the Autumn Budget, due on 29 October. According to a report in The Times, citing unnamed sources, Chancellor John Healey will raise the rate by 5 points.

The increase means an added cost for land-based gambling and entertainment businesses. However, it falls well short of the 40 percent rate proposed by the Social Market Foundation in June. At least 90 Labour MPs backed the proposal. Like those who signed the letter from MP Alex Ballinger, former Prime Minister Gordon Brown has also called for a higher rate, arguing that the extra revenue could be used for cost of living measures.

A similar picture emerged ahead of last year's budget. Brown and the SMF had called for Remote Gaming Duty (RGD) to be set at 50 percent and General Betting Duty (GBD) at 25 percent. In the end, RGD was raised to 40 percent from April 2026, and GBD to 25 percent from April 2027. Retail betting and horse racing bets were left out of the increase.

Another source of uncertainty for the retail sector is Prime Minister Andy Burnham's open opposition to adult gaming centres. Burnham supports removing the "aim to permit" rule, in a change that would give local authorities the power to limit the number of betting shops. Category B machines can pay out up to 500 pounds and are known as the most common type of device in betting shops, arcades and bingo halls.