Following the introduction of the 2027 UK Budget – which included an increase in Machine Games Duty (MGD) on higher-stakes machines to 25% – multiple operators have since reported growth in their respective share prices at the conclusion of 28 October.
Since UK Chancellor Jon Healey unveiled the 2027 Budget, operators such as Entain (5.2%), Evoke (4.1%), Rank Group (11.2%) and Flutter (1.2%) have all witnessed increases in share price at the time of writing.
While the MGD rise is less severe than the original estimates proposed by a Social Market Foundation think tank, its effects are still expected to be felt across the gambling industry.
Industry expert Paul Sculpher warned the MGD increase will lead to the closure of casinos, shops and adult gaming centres, as well as job losses en masse.
Building off such sentiment, the Betting and Gaming Council (BGC) indicated that the Government's gambling tax hike will cost thousands of jobs and push gamblers towards the black market.
"The (BGC) has expressed deep disappointment and concern at the Chancellor’s decision to raise (MGD) to 25%, warning that at this rate, EY modelling indicates almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk of closure,” the BGC stated.
"For Britain’s casinos, the increase will put venues and jobs at serious risk and undermine planned investment, despite recent Government reforms designed to encourage growth. There will be closures in the North of England and Scotland, with many previously closed venues still standing empty.”
The Social Market Foundation think tank originally believed the MGD increase could result in the figure doubling from the prior year, but perhaps the lower-than-expected rise helped generate share price increases for operators.
Entities such as Super Group and FDJ United also witnessed increases in share price at the conclusion of 28 October, rising 1.6% and 1.2%, respectively, since the Budget was unveiled.
Flutter announced an anticipated 1,400 redundancies across its European workforce on 20 October, still subject to final consultation, as part of a major restructuring initiative for the operator
