A coalition of Labour MPs, led by Alex Ballinger, has reached out to UK Chancellor John Healey to advocate for an increase in the machine games duty (MGD) on Category B gambling machines. Their letter, dispatched on Friday, coincides with rising speculation about potential tax hikes on UK land-based casinos, which could be announced in the Autumn Budget scheduled for 28 October.
The MPs argue that higher taxation should apply to gambling products classified as higher-risk, referencing the government’s decision to raise the remote gaming duty (RGD) on online gambling from 21% to 40%, effective from 1 April this year.
The correspondence from Ballinger specifically requests a raised duty on Category B machines, particularly the B3 machines commonly found in Adult Gaming Centres. This push for increased taxation follows a report by the Social Market Foundation, which recommended the government adjust MGD on higher-risk machines.
The letter describes the proposed tax increase as a "popular, targeted and proportionate" method for boosting revenue while also safeguarding the broader land-based leisure and hospitality industries, noting that pubs would not be impacted since they do not operate Category B machines.
Polls conducted by the Social Market Foundation indicated that 43% of voters are in favor of increasing taxes on slot machines located in high street betting shops.
As the Autumn Budget approaches, the land-based gaming sector is responding vigorously to the Labour MPs' suggestions. Grainne Hurst, CEO of the Betting and Gaming Council, criticized the push for tax hikes as "deeply misguided," referencing studies indicating that a rise in MGD to 40% could result in the loss of up to 16,000 jobs as well as the closure of nearly 1,500 betting shops and 34 casinos.
Hurst remarked, "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."
At a recent event at the Hippodrome Casino, key figures from the UK casino industry urged the government to reassess these proposals. Dan Waugh from Regulus Partners articulated concerns over the influence of think tanks and lobbyists on gambling policy, stating, "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."
He emphasized the need for the government to focus on the consumer perspective rather than the opinions of lobbyists with their own interests. Meanwhile, Paul Willcock, COO of Genting Casinos, pointed out how tax instability impacts companies' willingness to invest in the UK market, urging, "If we can get some relaxation or at least certainty on that, then investment will flow."
Recent analyses by Deutsche Bank indicated that Rank Group is the most likely operator to be adversely affected by an increase in MGD, primarily due to its extensive portfolio in the retail sector. In a trading update last week, Rank revealed a 5% rise in like-for-like net gaming revenue (NGR) for the first quarter of the 2026/27 financial year, but CEO Richard Harris warned that any potential doubling of MGD could lead to detrimental effects.
Harris stated, "Any increase to Machine Games Duty will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts and halt investment," echoing his earlier comments at the Hippodrome Casino about the critical nature of confidence in fostering investment.
He concluded, "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."
