In the upcoming Autumn Budget, Chancellor and UK Treasury Head John Healey announced a rise in Machine Games Duty (MGD) from 20% to 25%. This increase will target higher-stakes gaming machines, though pubs and seaside arcades will remain protected from the tax hike.
The government intends to use the additional tax revenue to support higher business rate relief for retail, hospitality, and leisure sectors. Healey stated, "To pay for this support for our high streets, I’m raising taxes on gambling by increasing Machine Games Duty from 20 per cent to 25 per cent for higher stakes machines, whilst protecting pubs and seaside arcades."
Additionally, it was confirmed that adult gaming centers and vape shops would not qualify for business rate relief. The announcement did not mention any specific changes impacting betting shops.
Prior to the Autumn Budget, there had been discussions about an MGD increase of up to 40%. Although this did not materialize, the confirmed 25% rate is anticipated to exert further pressure on the land-based gambling sector.
The Betting and Gaming Council (BGC) expressed concerns that additional tax increases could adversely impact businesses, employment, and investment in the industry. BGC Chief Executive Grainne Hurst highlighted on LinkedIn a week earlier, "I have been clear throughout that any further tax rise would heap more pressure on an industry already facing significant increases in its tax burden and rising costs across the board. For betting shops and casinos, MGD is only one part of the picture. Businesses are absorbing higher employment costs, business rates, and regulatory costs, alongside significant increases elsewhere in the gambling tax regime."
The BGC has also indicated that these mounting pressures correlate with the closure of betting shops throughout the UK, which started in 2026. Major operators such as Flutter, Entain, bet365, Betfred, and Evoke have announced either shop closures or job reductions.
