Chancellor and UK Treasury Head John Healey, confirmed the raising of Machine Games Duty from 20% to 25% in upcoming Autumn Budget. The increase applies to higher-stakes gaming machines, while pubs and seaside arcades will be protected.
The additional tax revenue is aimed helping fund higher business rate relief for retail, hospitality and leisure businesses, according to the Government.
Announcing the Budget measures, Healey said:
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.
The Chancellor also confirmed that adult gaming centres and vape shops would be excluded from business rate relief. No specific changes affecting betting shops were mentioned in the announcement.
Before the Autumn Budget, there were announcments regarding MGD raise up to 40%. Even though it didn’t happen, 25% rate is still expected to put pressure on land-based gambling sector.
The Betting and Gaming Council (BGC) had warned that further tax increases could negatively affect businesses, employment and investment across the industry.
BGC Chief Executive Grainne Hurst a week earlier wrote on LinkedIn:
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 linked these pressures to betting shop closures across the UK, which already happend during 2026. Flutter, Entain, bet365, Betfred and Evoke, announced shop closures or job cuts.