UK Raises Fixed-Odds Betting Terminal Duty to 25%

The UK gambling sector breathed a little easier after Chancellor John Healey announced in the autumn budget on 28 October that gaming machine duty would rise from 20% to 25%. There had been talk in the industry for some time of a 40% rate. That rate was not applied.

The five-point increase was more limited than the earlier plan to double the duty. The government also raised the small business exemption threshold, using the additional revenue. For retail, hospitality and leisure businesses, the threshold has been increased from £12,000 to £18,000.

The decision exempted the lower-stakes C and D category machines found in pubs from the increase. Adult gaming centres were excluded from the small business relief.

Before the budget, Betfred founder Fred Done said that if the tax were doubled, the high streets would die. Entain CEO Stella David said the increase would add about £100 million a year to the cost of the company's UK retail business. An analysis commissioned by the Betting and Gaming Council found that if the rate had been raised to 40%, 1,470 betting shops and 15,900 jobs could have been at risk.

In last year's budget, the online gaming duty was raised from 21% to 40%. According to Council data, more than 540 betting shops have closed or been announced for closure since then, and around 4,500 people have lost their jobs. Of these job losses, 1,400 resulted from Flutter Entertainment's restructuring plan.