A coalition of Labour MPs, spearheaded by Alex Ballinger, has reached out to UK Chancellor John Healey, advocating for an increased machine games duty (MGD) on Category B gambling machines. The request, submitted in a letter sent on Friday, coincides with rumors about potential tax hikes on land-based casinos expected in the upcoming Autumn Budget on October 28.
The MPs emphasized that products associated with higher gambling risks should incur higher taxes, highlighting last year’s decision by the UK government to raise the remote gaming duty (RGD) on online gambling from 21% to 40%, effective from April 1 this year.
In their letter, the MPs specifically called for an increased tax rate on Category B machines, particularly B3 machines located in Adult Gaming Centres. This appeal followed a report by the Social Market Foundation, a think tank, which recommended raising MGD on Category B machines deemed to be higher-risk.
The MPs referred to the tax increase as a “popular, targeted and proportionate” approach to generate revenue. They asserted that such a measure would also safeguard the broader land-based leisure and hospitality industries, emphasizing that pubs would remain unaffected as they do not host Category B machines.
Polling data from the Social Market Foundation revealed that 43% of voters back tax hikes on slot machines within high street betting outlets.
As the Autumn Budget draws near, the land-based gambling sector is pushing back against the proposed tax increases. Grainne Hurst, CEO of the Betting and Gaming Council, criticized the prospective tax hike as “deeply misguided,” cautioning that raising the MGD to 40% could jeopardize up to 16,000 jobs, leading to 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.”
During a panel discussion at the Hippodrome Casino, several prominent individuals from the UK casino industry urged the government to rethink the proposed measures. Dan Waugh from Regulus Partners criticized the sway of think tanks and lobbyists over gambling legislation, suggesting that their perspectives do not reflect the realities faced by consumers.
Paul Willcock, COO of Genting Casinos, pointed out that tax uncertainty creates obstacles for companies seeking to invest in the UK market, stating, “If we can get some relaxation or at least certainty on that, then investment will flow.”
Deutsche Bank's analysis indicated that Rank Group could be disproportionately impacted by a rise in MGD, given its extensive retail presence. In a recent trading update, Rank reported a 5% increase in like-for-like net gaming revenue for the first quarter of its 2026/27 fiscal year. However, CEO Richard Harris expressed concerns about the implications of a potential doubling of MGD, stating, “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.” He reiterated this concern at the Hippodrome Casino, highlighting the importance of maintaining investor confidence, which is crucial for fostering business investments. “Without confidence, things climb to a halt quite quickly,” Harris said, adding that speculation about higher taxes inhibits investment.
