90 Labour MPs have written to UK Chancellor John Healey, urging him to increase Machine Games Duty (MGD) in the upcoming Autumn Budget.
This follows last year’s Budget, which also raised gaming duties. Before that, 101 Labour backbenchers made similar calls for increases.
The MPs signed a letter from Labour MP Alex Ballinger, citing the Social Market Foundation (SMF) think tank’s rationale for raising the tax on Category B gaming machines to 40%. According to the SMF, this measure could raise £275m–£458m annually.
These machines are currently subject to the standard MGD rate of 20%. The Autumn Budget is due on 28 October.
Category B gaming machines are higher-stakes gambling machines commonly found in betting shops, adult gaming centres and casinos. The letter specifically highlights B3 machines.
The letter further notes that pubs would remain protected as they cannot offer Category B machines. It also states that bingo is ‘righlty’ protected through the abolition of Bingo Duty.
Ballinger’s letter also claims that adult gaming centres (AGCs) are disproportionately clustered in poorer communities.
The Betting and Gaming Council (BGC) responded that it understands concerns ‘’about protecting communities and high streets.’’ However, it also argued that MPs are misguided in believing higher taxes will achieve this.
BGC Chief Executive Grainne Hurst noted: “This letter claims doubling Machine Games Duty would protect high streets and raise revenue. The independent evidence speaks for itself and tells a very different story.
“EY modelling shows a rise to 40% could cost up to 16,000 jobs, close nearly 1,500 betting shops and 34 casinos, and leave the Treasury up to £124 million worse off.“
Category B gaming machines permit stakes of up to £2 every 2.5 seconds and jackpots of up to £500, making them among the highest-staking gaming machines permitted outside casinos
