A 25 percent cap on Machine Games Duty is on the agenda

According to anonymous sources speaking to The Times, Chancellor John Healey plans to raise Machine Games Duty (MGD) from 20 percent to 25 percent in the autumn budget. The budget will be announced on 28 October. If the increase is confirmed, it will present a relatively reassuring picture for the land-based betting and entertainment sector.

The sector has been under pressure for months. In a report published in June, the Social Market Foundation proposed raising MGD to 40 percent. Afterwards, 90 Labour MPs voiced the same demand in a letter written by Alex Ballinger. Gordon Brown, who served as Prime Minister between 2007 and 2010, also backed an increase, saying extra resources are needed to tackle the cost of living.

Brown's words are taken seriously in the industry. In the 2025 budget, Remote Gaming Duty was raised to 40 percent and General Betting Duty to 25 percent. Brown had also proposed 50 percent for MGD at that time, but this duty was exempted from the increase. Prime Minister Andy Burnham, for his part, does not hide his critical stance towards Adult Gaming Centres. He also supports allowing local authorities to limit the number of betting shops in their areas.

This pressure has triggered a coordinated lobbying effort in the UK gambling sector on a scale not seen for a long time. The impact of MGD goes beyond operators and employees. Horse racing is among the areas that could be affected. Part of the sport's annual funding comes from the Horserace Betting Levy, which is based on the gross profit that betting companies earn from related bets. If the tax increase leads to betting shop closures, this source of funding will also shrink.