UK Chancellor John Healey announced an increase in the Machine Games Duty (MGD) from 20% to 25% in the upcoming Autumn Budget. This tax hike will specifically apply to higher-stakes gaming machines, though it aims to protect pubs and seaside arcades from the impact.
The additional tax revenue is designed to help fund higher business rate relief for the retail, hospitality, and leisure sectors, according to government sources. Healey explained this decision by stating, "To pay for this support for our high streets, I’m raising taxes on gambling by increasing Machine Games Duty from 20 percent to 25 percent for higher stakes machines, whilst protecting pubs and seaside arcades."
In related news, Healey stated that adult gaming centres and vape shops would not benefit from the business rate relief. There were no mentions of specific changes for betting shops in the budget announcement.
Prior to the budget, there were indications that the MGD could rise as high as 40%, but the confirmed rate of 25% still signals increased pressure on the land-based gambling sector. The Betting and Gaming Council (BGC) had previously cautioned that such tax increases could have detrimental effects on businesses, employment, and investments within the industry.
BGC Chief Executive Grainne Hurst expressed her concerns on LinkedIn, stating, "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 linked these financial pressures to the closure of betting shops across the UK, which had already started to take effect in 2026. Major companies including Flutter, Entain, bet365, Betfred, and Evoke have announced shop closures or job cuts as a result of these increasing costs.
