Nearly 90 Labour MPs are advocating for an increase in the Machine Games Duty (MGD) on Category B gaming machines to 40%, in advance of the government's upcoming Autumn Budget. This tax increase initiative has gained support from former Prime Minister Gordon Brown.
The campaign is led by Alex Ballinger, the MP for Halesowen, who encourages the Chancellor to consider the recommendations of the Social Market Foundation (SMF). Their forecasts suggest that raising the MGD could generate between £275 million and £458 million in annual tax revenue.
Category B machines are capable of dispensing winnings of up to £500, and these machines can be found in virtually every betting shop, bingo hall, or arcade throughout the UK. Currently, the MGD rates vary from 5% to 25%.
Proponents of the tax increase assert that gambling establishments often thrive in less affluent areas, and that high-paying terminal machines tend to contribute to increased gambling-related harm. Ballinger has proposed that any exemptions from the tax should not apply to machines in pubs.
However, the gambling industry expresses concerns over the proposed legislation. Organizations such as the Bingo Association, Bacta, and the Betting and Gaming Council argue that raising taxes could lead to job losses across the sector. Some gambling companies have already announced intentions to cut jobs and close betting shops in the UK.
In response, the Betting and Gaming Council is advocating its "Back Our Betting Shops" campaign to resist further burdens on gambling businesses. Fred Done, founder of Betfred, warned that if the MGD is raised, many high street bookmakers could be forced out of business by 2030. Rank Group reported that roughly a third of its venues would have to close due to such tax hikes. Additionally, over 1,000 representatives from the greyhound racing industry have signed a letter opposing the proposed tax increase.
