UK Raises Machine Games Duty to 25%

In its 28 October budget, the UK government raised the Machine Games Duty rate on high-stake machines from 20% to 25%. The new rate will start on 1 April 2027 and will apply to machines with a maximum stake above £1 and a maximum prize above £100. The rate for low-stake machines will not change. The possibility of raising the rate to 40% has been shelved.

Entain, which owns Ladbrokes and Coral, described the decision as a disappointing step. According to the company, the regulation will add about €29.8 million (£25 million) in annual costs to its physical betting business in the UK and Ireland. The company aims to offset this burden by the end of 2028 through shrinking its shop estate, group-wide optimisation and market share gains.

While the 40% scenario was being discussed, a study commissioned by the industry warned that this rate could put 16,000 jobs, 1,500 betting shops and 34 casinos at risk. The 25% increase will still raise costs, but its impact on betting halls, bingo halls, bars and casinos will be more moderate.

The Treasury's model assumes that operators may reduce their return-to-player rates and that some activity may shift to online gaming. According to the forecast approved by the Office for Budget Responsibility, the duty will raise about €161.1 million (£135 million) in the 2027-28 financial year.