A cohort of Labour MPs, led by Alex Ballinger, has reached out to UK Chancellor John Healey, advocating for an increased rate of machine games duty (MGD) on Category B gambling machines. Their letter, submitted on Friday, comes in anticipation of potential tax hikes for UK land-based casinos during the Autumn Budget set for October 28.
In their correspondence, the MPs highlighted the need for higher taxation on gambling products deemed to present greater risks. This follows the government's decision last year to raise the remote gaming duty (RGD) on online gambling from 21% to 40%, effective from April 1.
The MPs specifically called for a tax uplift targeting B3 machines, which are commonly located in Adult Gaming Centres. They established that raising the MGD would be a “popular, targeted and proportionate” action to generate revenue while shielding other areas of the leisure and hospitality sectors, such as pubs that do not offer Category B machines.
Polling carried out by the Social Market Foundation indicated that 43% of voters support higher taxes on slot machines found in high street betting establishments.
However, the land-based gaming sector is mounting a vigorous response to these proposals with the budget looming. Grainne Hurst, CEO of the Betting and Gaming Council, criticized the proposed tax increases as “deeply misguided.” She referenced research suggesting a rise to 40% in MGD could lead to the loss of up to 16,000 jobs and the closure of nearly 1,500 betting shops and 34 casinos. “MPs calling for higher taxes should consider the consequences for the very communities they say they want to protect,” Hurst stated, adding that each closure could lead to vacant storefronts and further job losses.
At a recent panel held at the Hippodrome Casino, several prominent figures from the casino industry urged government officials to reconsider these tax increases. Dan Waugh from Regulus Partners expressed concerns about the influence of think tanks and lobbyists on gambling policy, advocating for a focus on consumer perspectives over the interests of lobbyists.
Paul Willcock, Chief Operating Officer of Genting Casinos, drew attention to how tax uncertainty hampers companies’ willingness to invest in the UK market. He remarked, “If we can get some relaxation or at least certainty on that, then investment will flow.”
Rank Group appears set to face significant impacts from a potential hike in MGD, given its extensive retail presence. The company recently reported a 5% rise in like-for-like net gaming revenue for the first quarter of its 2026/27 financial year. Nevertheless, CEO Richard Harris warned that an increase in MGD could drive costs up, jeopardize venue viability, lead to closures and job losses, while also reducing tax receipts and stalling investment.
At the Hippodrome Casino, Harris remarked, “I wouldn’t underestimate the importance of confidence in giving us the ability to kind of really back investment into our business.” He stressed that speculation regarding higher taxation could stall investment, underscoring the need for confidence to stimulate progress.
