Gaming machine tax in England to rise by 5 percentage points

UK Chancellor John Healey has announced that Machine Games Duty (MGD), applied to Category B gaming machines, will be raised by 5 percentage points to 25%. The increase will take effect in April 2027. The rate, which is lower than the expected 40% increase, brought relief to gaming companies.

However, industry bodies, retail businesses and racing stakeholders argue that the tax burden has become heavier. Grainne Hurst, chair of the Betting and Gaming Council, said that based on EY modelling, around 9,000 jobs could be lost and up to 1,000 betting shops and casinos could close or face severe financial pressure. Hurst said that closing these venues would weaken local high streets and push customers towards illegal operators.

Alongside the same budget, the government also announced a reform of business rates. The threshold for the small business discount will rise from £12,000 to £18,000, and around 70,000 businesses will fall outside the system. However, adult gaming centres will not be able to benefit from this discount.

Betting company Entain said the change would bring an additional annual cost of approximately £25 million to its retail operations in the UK and Ireland. Chief executive Stella David said the regulations would harm employment and the sector as a whole, and would make illegal gaming providers more attractive.

Bingo Association chief executive Nicole Garrett said clubs' future investments would be damaged, and that clubs in the Midlands and the North would be the most affected.

This increase follows last year's budget, which raised the remote gaming duty from 21% to 40%, and the planned rise in remote betting duty from 15% to 25% next year.