A cohort 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) applied to Category B gambling machines. This letter was sent on Friday in anticipation of potential tax hikes for land-based casinos, which might be announced during the Autumn Budget set for October 28.
The MPs argued that higher-risk gambling products should incur elevated taxes, referencing the government's decision last year to ramp up the remote gaming duty from 21% to 40%, effective from April 1 of this year. The letter specifically urged for a tax increase on Category B machines, particularly the B3 type found in Adult Gaming Centres.
This push for a higher tax is heightened by findings from the Social Market Foundation, a think tank that has recommended an increase in MGD for these higher-risk machines.
The MPs' communication describes the proposed increase in MGD as a “popular, targeted and proportionate” measure for enhancing government revenue. They also noted that this tax hike would shield the broader land-based leisure and hospitality industries, as pubs are not affected since they do not offer Category B machines.
Polling data cited from the Social Market Foundation indicated that 43% of voters support raising taxes on slot machines located in high street betting shops.
However, as the Autumn Budget approaches, the land-based sector is mobilizing against these proposals. Grainne Hurst, CEO of the Betting and Gaming Council, responded to the letter by calling the proposed tax hike “deeply misguided.” She referenced studies suggesting that increasing the MGD to 40% could jeopardize up to 16,000 jobs, lead to the closure of nearly 1,500 betting shops, and impact around 34 casinos.
Hurst emphasized that MPs should consider the repercussions for local communities, stating: “Every closure means another empty shopfront, fewer jobs and another blow to Britain’s high streets.”
A panel discussion at the Hippodrome Casino last week featured significant voices from the UK casino industry who urged the government to reconsider these proposals. Dan Waugh from Regulus Partners criticized the sway of think tanks and lobbyists over gambling policy, suggesting that their perspectives are disconnected from the experiences of casino patrons.
On the other hand, Paul Willcock, COO of Genting Casinos, remarked that tax uncertainty hampers companies' investment willingness in the UK market, expressing that more certainty could catalyze investments.
An analysis by Deutsche Bank conducted last month identified Rank Group as the operator most likely to bear the brunt of an MGD increase, given its substantial retail footprint. In a recent trading update, Rank reported a 5% growth in like-for-like net gaming revenue for the first quarter of their 2026/27 financial year. However, CEO Richard Harris cautioned against a potential doubling of the MGD, stating that it could drive up costs, diminish venue viability, lead to closures, and ultimately hinder both tax receipts and investment.
