A coalition of Labour MPs, led by Alex Ballinger, has reached out to UK Chancellor John Healey, advocating for a significant increase in the machine games duty (MGD) applicable to Category B gambling machines. Their letter, sent on Friday, coincides with rising expectations that Healey may introduce tax hikes for land-based casinos during the Autumn Budget scheduled for October 28.
The MPs argue that gambling products associated with higher risks should be taxed more heavily. This follows a prior decision by the UK government to elevate the remote gaming duty (RGD) on online gambling from 21% to 40%, a move that took effect on April 1 of this year. Ballinger's correspondence specifically calls for a higher MGD rate, focusing on B3 machines commonly found in Adult Gaming Centres.
The call for increased taxes stems from a report by the Social Market Foundation, which recommended that the government raise MGD on higher-risk Category B machines. The letter characterized such an increase in MGD as a “popular, targeted and proportionate” means to generate additional revenue, while also protecting the broader land-based leisure and hospitality sectors, asserting that pubs—unaffected by the rise—do not offer these machines.
Polling data from the Social Market Foundation indicates that 43% of voters support increased taxes on slot machines located in high street betting shops.
However, as the date for the Autumn Budget approaches, industry representatives are expressing concerns about the potential tax hikes. Grainne Hurst, CEO of the Betting and Gaming Council, criticized the Labour MPs' proposal as “deeply misguided,” referring to studies that suggest elevating the MGD to 40% could jeopardize up to 16,000 jobs and lead to the closure of nearly 1,500 betting shops and 34 casinos. Hurst cautioned that any closures would leave more empty storefronts, diminish job availability, and adversely affect community vitality.
During a panel discussion at the Hippodrome Casino, various leaders from the UK casino industry urged the government to reconsider these proposals. Dan Waugh of Regulus Partners criticized think tanks and lobbyists for their role in shaping gambling policies, asserting that their influence overlooks consumer perspectives.
Paul Willcock, COO of Genting Casinos, pointed out that uncertainty surrounding tax policies can discourage investment in the UK market. “If we can get some relaxation or at least certainty on that, then investment will flow,” he remarked.
An analysis by Deutsche Bank revealed that Rank Group, which has a significant retail presence, could be the most impacted by a rise in MGD. In its recent trading update, Rank reported a 5% increase in like-for-like net gaming revenue for Q1 of its 2026/27 financial year. However, CEO Richard Harris voiced concerns about the impending risk of MGD potentially doubling, 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 message at the Hippodrome Casino, emphasizing the crucial role of confidence in driving investment. “Without confidence, things climb to a halt quite quickly,” he said. The ongoing speculation regarding tax increases is already stifling investment opportunities in the sector.
