UK Budget raises Machine Games Duty to 25%

The UK Chancellor, Jon Healey, has unveiled the 2027 Budget, confirming an increase in Machine Games Duty (MGD) on higher-stakes machines to 25%.

Although the rise is less severe than the doubling proposed by the Social Market Foundation think tank, its effects will still be felt across the gambling industry.

Gaming machines are a key factor in determining betting shops’ profitability. The tax increase could push outlets operating on already narrow margins into losses.

According to a mid-sized independent bookmaker quoted by the Racing Post, the increase could add around £10,000 in annual costs per shop. The operator warned that limited opportunities to generate additional business would make it difficult to offset the extra expense, potentially resulting in job losses.

The impact could extend beyond betting shops. The BBC has reported that bingo halls and amusement arcades have also warned of possible closures following an MGD increase. Buzz Bingo reportedly warned that a five-percentage-point rise could push 40% of its clubs into loss-making territory.

The Betting and Gaming Council (BGC) has also previously raised concerns about the potential impact of the increase, as the industry is already facing a near-doubling of Remote Gaming Duty and preparing for a substantial increase in General Betting Duty.

BGC Chief Executive Grainne Hurst highlighted recent industry developments, including betting shop closures at Betfred, planned job cuts at Entain and bet365 and Flutter’s announcement this week that up to 1,400 jobs could be cut.

Further details on the potential impact of the tax increases on the UK gambling industry are expected to emerge as operators assess the implications for their businesses, employment and future investment. Global Gaming Insider will continue to follow developments.