Machine games duty is expected to rise from 20% to 25% in next week’s UK Budget, according to The Times, potentially limiting the impact on bookmakers and British horseracing compared with a previously proposed increase to 40%.
The newspaper cited sources indicating that the Government would adopt the smaller rise, though the rate hasn't been confirmed through a Budget announcement.
Former Prime Minister Gordon Brown called in August for a substantial increase in duty on gaming machines in betting shops, arguing that it could generate up to £500m ($669m).
The Betting and Gaming Council (BGC) opposed a sharp increase, warning that pressure on retail operators could affect employment and the funding bookmakers provide to racing.
Its estimates suggested a larger rise could contribute to the closure of up to 2,900 betting shops, threaten more than 21,000 jobs and reduce annual racing contributions through levy payments and media rights by £70m.
British racing receives funding through the horserace betting levy, which generated £108m for the sport in 2024/25, alongside commercial income including media rights.
The British Horseracing Authority (BHA) previously urged caution over Brown’s proposal. CEO Brant Dunshea said the organisation wanted to engage with the Government on the importance of betting shops to communities and their relationship with racing.
The BGC described a substantial increase as further pressure on an already heavily regulated industry.
If confirmed, the reported 25% rate would represent a lower increase than the sector had feared, although bookmakers would still face higher machine taxation and racing’s indirect exposure would remain relevant.
The debate follows the BHA’s response to the November 2025 Budget, when it welcomed unchanged horseracing betting duty but warned that higher taxes elsewhere could affect the sport indirectly.
Ireland has meanwhile retained its 2% betting duty for 2027 while increasing Horse Racing Ireland funding to €81.6m ($92m).
An increase from 20% to 25% represents five percentage points, equivalent to a 25% rise in the tax rate
