A coalition of Labour MPs, led by Alex Ballinger, has addressed a letter to UK Chancellor John Healey, advocating for an increase in the machine games duty (MGD) rate specifically for Category B gambling machines. The correspondence was sent on Friday, coinciding with rising expectations that the Chancellor may propose tax hikes affecting land-based casinos in the upcoming Autumn Budget set for October 28.
The MPs argued that gambling products with higher risk profiles should be taxed more heavily. This call comes in light of the UK government's decision to raise the remote gaming duty (RGD) for online gambling from 21% to 40%, a measure that took effect on April 1 this year.
In their letter, the MPs specifically highlighted the need for an increased tax on Category B machines, particularly focusing on the B3 machines located in Adult Gaming Centres.
This push for higher taxation on more harmful gambling products follows a report by the Social Market Foundation, a think tank, which suggested that the government should consider elevating the MGD on these higher-risk machines.
The MPs contended that the proposed tax increase would be a “popular, targeted and proportionate” step to generate revenue. They further asserted that this measure would safeguard the broader land-based leisure and hospitality industries since pubs do not usually feature Category B machines, leaving them unaffected by the proposed tax changes.
In support of their argument, the letter cited polling conducted by the Social Market Foundation, indicating that 43% of voters are in favor of increasing taxes on slot machines found in high street betting establishments.
Despite the MPs’ advocacy, the land-based sector is currently mobilizing against these proposed measures, especially with the budget date drawing near.
Grainne Hurst, CEO of the Betting and Gaming Council, criticized the suggested tax increase, labeling it “deeply misguided.” She pointed to research indicating that raising the MGD to 40% could lead to the loss of up to 16,000 jobs, as well as the closure of nearly 1,500 betting shops and 34 casinos. Hurst stated, “MPs calling for higher taxes should consider the consequences for the very communities they say they want to protect. Every closure means another empty shopfront, fewer jobs and another blow to Britain’s high streets.”
During a panel discussion at the Hippodrome Casino last week, leaders from the UK casino industry urged the government to reassess these proposed tax hikes. Dan Waugh of Regulus Partners expressed his discontent with the influence of think tanks and lobbyists on gambling policy, questioning their understanding of the industry's real-world implications. He stated, “Frankly, a think tank with somewhat murky funding telling the government that gaming is this terrible thing is sort of irrelevant because they’re not the ones going to the casinos.”
Paul Willcock, COO of Genting Casinos, addressed the importance of tax stability in promoting investment within the UK market, saying, “If we can get some relaxation or at least certainty on that, then investment will flow.”
Recent analysis from Deutsche Bank highlighted Rank Group as the gambling operator most vulnerable to a potential increase in MGD due to its extensive retail footprint. In their recent trading update, Rank reported a 5% rise in like-for-like net gaming revenue for the first quarter of the 2026/27 financial year. However, CEO Richard Harris warned about the adverse effects of a potential doubling of MGD, indicating that it would raise costs, threaten venue viability, and ultimately lead to job losses as well as curtail investment.
At the Hippodrome Casino, Harris had remarked on the critical nature of confidence in the industry, stressing, “Without confidence, things climb to a halt quite quickly. And just speculation about higher taxation actually brings investment to a halt. So that confidence is so critical to get things moving.”
