A collective of Labour MPs, spearheaded by Alex Ballinger, has reached out to UK Chancellor John Healey, advocating for an increase in the machine games duty (MGD) specifically targeting Category B gambling machines. This appeal, sent on Friday, surfaces as speculation grows surrounding potential tax hikes for land-based casinos, expected to be detailed in the Autumn Budget scheduled for 28 October.
The MPs contend that gambling products with higher harm should incur elevated taxes, referencing the government's decision last year to raise the remote gaming duty (RGD) on online gambling from 21% to 40%, effective from 1 April this year.
In their correspondence, the MPs focused on B3 machines, which are prevalent in Adult Gaming Centres, urging for a raised tax rate on these specific machines. The push for increased taxation is bolstered by a report from the Social Market Foundation, which called for the government to adjust MGD on these higher-risk Category B machines.
Labeling the proposed increase as “popular, targeted and proportionate,” the letter argues that raising the MGD could help generate revenue while protecting other sectors of the land-based leisure and hospitality industries, particularly as pubs do not provide Category B machines and would remain unaffected.
Polling commissioned by the Social Market Foundation indicates that 43% of voters favor the introduction of higher taxes on slot machines found in high street betting shops. Despite this backing, the land-based gambling sector is pushing back against the proposed tax increase as the Autumn Budget approaches.
Grainne Hurst, CEO of the Betting and Gaming Council, denounced the proposed hike as “deeply misguided.” She referenced research suggesting that escalating MGD to 40% could result in the loss of approximately 16,000 jobs and the closure of nearly 1,500 betting shops and 34 casinos. Hurst cautioned MPs to consider the adverse effects such actions could have on the community, noting, “Every closure means another empty shopfront, fewer jobs and another blow to Britain’s high streets.”
During a panel at the Hippodrome Casino last week, several prominent figures from the UK casino industry urged the government to rethink its stance. Dan Waugh of Regulus Partners critiqued the sway of think tanks and lobbyists in the formulation of gambling policy, stating that outsiders promoting negative perceptions about gaming fail to grasp the real impact on consumers. He emphasized the need for the government to prioritize the consumer perspective while disregarding the interests of lobbyists.
Paul Willcock, COO of Genting Casinos, underscored the necessity for tax clarity to encourage investment in the UK market, remarking, "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 particularly vulnerable to the proposed MGD increase due to its significant retail presence. In its latest 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 warned about the ramifications of a possible 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."
Harris echoed these concerns at the Hippodrome Casino, articulating the crucial role of investor confidence in sustaining and fostering business investment. He observed that uncertainty about forthcoming tax hikes could stifle investment opportunities, reiterating that speculation about tax increases can quickly halt forward momentum in the industry.
