SMF Calls for Higher Tax on High-Risk Gaming Machines

United Kingdom.- 2 July 2026 www.zonadeazar.com The Social Market Foundation (SMF) has urged the UK Government to increase the Machine Games Duty (MGD) applied to Category B gaming machines, arguing that the current tax structure does not adequately reflect the social costs associated with gambling-related harm. The proposal is expected to form part of discussions ahead of the Government’s next Budget.

News Details

In a report published this week, the SMF argued that Category B gaming machines are among the highest-risk gambling products, based on data from the UK Gambling Commission. The think tank therefore recommends creating a new Machine Games Duty band specifically targeting these higher-risk machines.

The report, written by SMF Chief Economist Gideon Salutin and Senior Researcher Richard Hyde, states that the current tax regime leaves taxpayers carrying a significant share of the economic costs associated with gambling harm while taxation on these machines remains comparatively low.

Industry Context

The proposal comes only months after tax increases on remote gambling were introduced in the UK and reignites the debate over taxation of the land-based gambling sector. While public health organisations support higher taxes on products considered to pose greater risks, industry representatives warn that additional tax increases could reduce operator profitability, threaten jobs and encourage the growth of the illegal gambling market.

Statements

The original source does not include direct statements from government officials or gambling operators. The Social Market Foundation’s report argues that the current tax framework underestimates the social impact of Category B gaming machines and recommends reforming taxation so that it better reflects these costs.

Next Steps or Impact

The proposal is expected to be considered as part of discussions ahead of the UK’s next Budget. If adopted, it would represent another significant change to Britain’s gambling tax framework and could intensify debate among regulators, operators and policymakers over the balance between tax revenues, consumer protection and the competitiveness of the regulated market.

Edited by: @_fonta