UK Considers Raising Machine Games Duty to 25% in Autumn Budget
United Kingdom.- 22 October 2026 | www.zonadeazar.com The UK Government is reportedly considering increasing the standard Machine Games Duty (MGD) rate from 20% to 25%, affecting revenue generated by certain gaming machines in land-based venues.
According to reports published on 21 October 2026, Chancellor of the Exchequer John Healey could announce the measure in the upcoming Autumn Budget on 28 October.
The proposed five-percentage-point increase would be substantially lower than the 40% rate advocated by some political figures.
No official decision has yet been confirmed.
Calls for a 40% Tax Rate
The debate intensified in June when the Social Market Foundation (SMF) proposed doubling the standard MGD rate to 40%.
Subsequently, 90 Labour MPs supported a letter coordinated by Alex Ballinger MP, calling for the proposed increase.
Former Prime Minister Gordon Brown has also advocated higher gambling taxes to help fund measures addressing the cost-of-living crisis.
However, gambling industry representatives warn that a 40% rate could threaten the financial viability of numerous businesses.
Impact on Betting Shops and Gaming Venues
Machine Games Duty affects gaming machines operating in:
- Land-based betting shops.
- Bingo halls.
- Adult Gaming Centres (AGCs).
Industry associations argue that substantial increases could lead to business closures and job losses.
Highlighting the financial pressures already facing the sector, Flutter Entertainment recently announced restructuring plans that could affect up to 1,400 employees.
Meanwhile, Betfred founder Fred Done previously warned that increasing MGD to 40% could threaten the future of traditional betting shops.
Horseracing and Greyhound Racing Concerns
The potential increase has also raised concerns among organisations representing horseracing and greyhound racing.
Although horseracing betting was excluded from certain previous tax increases, a reduction in betting shop numbers could indirectly affect the sport’s funding.
Abbie MacGregor, Director of Corporate Affairs at the Greyhound Board of Great Britain (GBGB), explained that greyhound racing depends heavily on betting activity in retail shops.
She warned that venue closures could reduce both industry revenue and employment opportunities.
Bingo Industry Warns of Closures
The Bingo Association has also expressed serious concerns.
Its Chief Executive, Nicole Garrett, highlighted that the United Kingdom currently has 239 bingo clubs.
According to the association’s estimates, 102 venues could become loss-making if MGD increased to 40%.
Garrett explained that although Bingo Duty was abolished in the previous Budget, bingo clubs remain dependent on income generated by gaming machines.
Next Steps and Industry Impact
Grainne Hurst, CEO of the Betting and Gaming Council (BGC), urged lawmakers to consider the consequences of higher taxation for employment and local communities.
Meanwhile, Allaster Gair, Communications Director at Bacta, warned of potential consequences for the entertainment and tourism industries.
The Government’s decision is expected to become clear when the Autumn Budget is presented on 28 October 2026.
For the gambling industry, the difference between a 25% and a 40% tax rate could significantly affect the profitability of land-based operations.
The debate highlights the tension between government revenue objectives and the economic sustainability of regulated gambling businesses.
Editó: @fonta
