A coalition of Labour MPs, led by Alex Ballinger, has reached out to UK Chancellor John Healey, urging him to raise the machine games duty (MGD) on Category B gambling machines. This correspondence was sent on Friday, coinciding with rumors of impending tax hikes for UK land-based casinos as part of the Autumn Budget scheduled for 28 October.
In their letter, the MPs asserted that gambling products with a higher risk should be taxed more heavily. Their call for a tax increase follows the government's decision last year to raise the remote gaming duty (RGD) for online gambling from 21% to 40%, a change that took effect on 1 April this year.
The letter specifically advocates for a heightened tax rate on Category B machines, particularly the B3 machines commonly located in Adult Gaming Centres. This push for increased taxation has gained traction following a report from the Social Market Foundation, which recommended hiking the MGD on these higher-risk machines.
The MPs described the proposed tax increase as a “popular, targeted and proportionate” approach to enhancing government revenue. They further claimed that it would protect the broader leisure and hospitality sectors, pointing out that pubs would not be impacted since they do not offer Category B machines. Polling data from the Social Market Foundation indicated that 43% of voters back an increase in taxes on slot machines located in betting shops.
As the Autumn Budget approaches, resistance from the land-based gambling sector is mounting. Grainne Hurst, CEO of the Betting and Gaming Council, criticized the proposed tax rise, branding it “deeply misguided.” She referenced studies indicating that raising the MGD to 40% could potentially eliminate up to 16,000 jobs and cause nearly 1,500 betting shops and 34 casinos to close.
Hurst stated, “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.”
At a recent panel discussion at the Hippodrome Casino, prominent figures from the UK casino industry called on the government to reassess these proposals. Dan Waugh from Regulus Partners criticized the sway of think tanks and lobbyists over gambling policies, asserting that their perspectives are disconnected from the real-life impacts on consumers.
Paul Willcock, COO of Genting Casinos, pointed out that uncertainty surrounding taxes hampers companies’ willingness to invest in the UK market. He said, “If we can get some relaxation or at least certainty on that, then investment will flow.”
An analysis by Deutsche Bank highlighted that Rank Group may be the hardest hit by an increase in MGD, given its extensive retail presence. In a recent trading update, Rank reported a 5% uptick in like-for-like net gaming revenue for the first quarter of its 2026/27 financial year. However, CEO Richard Harris warned that a substantial MGD increase would cause increased costs, hinder venue viability, prompt closures and job losses, and ultimately reduce tax revenues and investments.
Harris reiterated this sentiment at the Hippodrome Casino, emphasizing the importance of confidence in fostering investment within the sector. According to him, speculation about heightened taxes can discourage investment, making it critical for the government to stabilize the situation to encourage economic activity in the gambling industry.
