A coalition of Labour MPs, led by Alex Ballinger, has reached out to UK Chancellor John Healey, advocating for an increase in the machine games duty (MGD) on Category B gambling machines. The request was formalized in a letter sent last Friday, just days ahead of the anticipated Autumn Budget announcement on October 28, which may include tax hikes for UK land-based casinos.
In their letter, the MPs argued that products associated with higher gambling harm should incur greater taxation fees. This follows last year's government decision to raise the remote gaming duty (RGD) on online gambling from 21% to 40%, a change that took effect on April 1 this year.
Specifically, the MPs are urging an increase in MGD for Category B machines, particularly the B3 variant commonly found in Adult Gaming Centres. The call for higher taxes aligns with recommendations from the Social Market Foundation, a think tank that has also proposed increasing MGD on these machines deemed higher-risk.
The letter described the proposed tax increase as a “popular, targeted and proportionate” approach to augmenting government revenue. It further claimed such an adjustment would not adversely affect pubs, which do not operate Category B machines, and would help sustain the broader land-based leisure and hospitality industries.
Support for increased taxation on slot machines in betting shops is backed by polling data from the Social Market Foundation, revealing that 43% of voters are in favor of such measures.
However, this proposal has sparked significant pushback from the land-based gaming sector, particularly with the Autumn Budget looming. Grainne Hurst, CEO of the Betting and Gaming Council, criticized the suggested rise in MGD as “deeply misguided.” She highlighted studies indicating that elevating MGD to 40% could result in the loss of around 16,000 jobs, the closure of nearly 1,500 betting shops, and 34 casinos. Hurst urged MPs to consider the severe implications these tax increases would have on local communities.
During a recent panel discussion at the Hippodrome Casino, several industry leaders expressed their concerns over the proposals. Dan Waugh from Regulus Partners criticized the impact that think tanks and lobbyists have on gambling policy. He argued that their perspectives do not reflect the real experiences of those who frequent casinos.
Paul Willcock, COO of Genting Casinos, spoke about the investment hesitation stemming from tax uncertainties, stating: "If we can get some relaxation or at least certainty on that, then investment will flow."
Recent analysis from Deutsche Bank indicated that Rank Group is poised to be the most affected by a potential MGD hike, due to its broad retail footprint. In a recent trading update, Rank reported a 5% increase in like-for-like net gaming revenue for the first quarter of its financial year 2026/27. However, CEO Richard Harris warned of the financial risks associated with a potential MGD increase, asserting that such a measure would lead to increased costs, diminished venue viability, and job losses while stifling tax revenue and hindering investment.
Harris reiterated the importance of confidence in the investment climate during remarks at the Hippodrome, noting that speculation regarding tax increases can swiftly halt investment.
