HMRC Figures Reignite Debate Over Further UK Gambling Tax Rises
United Kingdom.- 6 October 2026 | www.zonadeazar.com New provisional figures from HM Revenue & Customs, HMRC, have put gambling taxation back at the centre of the UK debate.
Between April and June 2026, Remote Gaming Duty, RGD, receipts reached £376 million, up 22% year-on-year, after the tax rate on online gaming increased from 21% to 40%.
Higher Receipts After RGD Increase
The new Remote Gaming Duty rate took effect on 1 April 2026.
During the April-June quarter, HMRC collected £67 million more than during the same period a year earlier.
The figures provide one of the first indications of revenue performance under the new tax framework.
Comparison With Previous Quarter
Despite the year-on-year increase, receipts were below the £360 million collected in the first quarter of 2026.
That period was the final full quarter under the previous 21% rate.
The comparison highlights that it remains too early to determine the structural impact of the new system.
Tax Elasticity Debate
A key argument from the industry against further tax increases is that higher rates can reduce operator revenue and, eventually, government receipts.
HMRC’s initial figures, however, show that year-on-year tax revenue increased in the short term.
Machine Games Duty in Focus
Attention has now shifted towards Machine Games Duty, MGD.
The current framework includes three main rates:
- 5% for certain lower-stake and lower-prize machines.
- 20% standard rate.
- 25% higher rate.
No official increase has yet been confirmed.
Potential Changes in the Next Budget
The industry is assessing whether the next Budget could include another change to MGD.
Significant increases to the existing rates have been discussed publicly, although the Government has not formally confirmed any proposal.
Machine Tax Receipts
HMRC recorded approximately £162 million in Machine Games Duty receipts between April and June.
That represents year-on-year growth of around 5%.
Receipts stood at approximately £160 million in the first quarter of 2026.
Retail Industry Pressure
The retail betting sector has intensified lobbying against any further increase.
The Betting and Gaming Council, BGC, launched its “Back Our Betting Shops” campaign to highlight potential consequences for shops, jobs and investment.
Closure Warnings
Retail operators argue that a significant MGD rise could make large numbers of betting shops economically unviable.
JenningsBet, for example, has warned that more than 100 of its locations could be at risk.
These figures represent estimates put forward by the industry itself.
Horseracing Concerns
The British Horseracing Authority has also raised concerns.
It argues that widespread betting shop closures would reduce revenue from the horseracing levy and media rights.
According to its own estimates, a 40% standard MGD rate could trigger thousands of shop closures and substantially reduce racing-related revenue.
Casino Investment Warning
The BGC has also said UK casino operators have more than £200 million in planned investment for 2026/27.
The trade body argues that doubling certain MGD rates could remove more than £50 million of that investment.
Tax Context
The debate follows a major overhaul of gambling taxation.
From April 2026, RGD increased from 21% to 40%, while Bingo Duty was abolished.
From April 2027, a new 25% rate will also apply to certain remote betting activity under General Betting Duty, with exceptions including remote bets on UK horseracing.
Next Steps or Impact
Attention is now focused on the next Budget and whether the Government chooses to amend Machine Games Duty.
HMRC’s figures provide ammunition for both sides of the debate: they show higher year-on-year receipts following the RGD increase, but still cover too short a period to establish definitive conclusions about the long-term impact.
Future trends in tax receipts, shop closures, investment and market activity will be central to assessing the effects of the reform.
Editó: @fonta
