Gaming machine tax hike sparks industry backlash
The UK has announced that gaming machine duty will rise in April 2027, but the rate of 25 percent instead of the originally planned 40 percent was welcomed by the stock market. Industry representatives, however, warn of job losses and the closure of betting shops.
Gaming machine duty (MGD) in the United Kingdom will rise in April 2027. Shares of major operators rose after Chancellor John Healey announced that the tax would not be doubled. Entain and Rank Group shares gained about 7 percent.
Steve Grech, European CEO of Trust Payments, welcomed the government's clarity and the avoidance of the 40 percent tax that had been expected. However, he stressed that a 25 percent rate remains a serious burden for operators with narrow margins. Grech said he sees this period as an opportunity to review pricing, machine mix and investment plans, but warned that the tax burden could shift to regulated online platforms.
The Betting and Gaming Council (BGC) described the increase as severely damaging. Grainne Hurst said that, based on independent modelling by EY, around 9,000 jobs could be lost and around 1,000 betting shops and casinos could close or face a serious risk of closure. According to Hurst, closed venues could leave high streets empty and indirectly strengthen illegal gambling operators.
Entain said it calculates that its retail operations in the UK and Ireland will face an annual cost of about 25 million pounds under the new rules, and expressed disappointment with the decision. The horseracing sector also points to a possible annual hit of 57 million pounds.
Comments (0)
Be the first to comment.
Log in to comment.