JD Wetherspoon could face a 66 percent rise in its annual MGD bill, from £27.5m to £45.7m, if the Chancellor pursues plans to double MGD, with the pub giant joining multiple landlords in warning that the rise could jeopardise “an important revenue stream.”
JD Wetherspoon is preparing for a “stand-off” with Chancellor Rachel Reeves over a potential increase in MGD, as pubs across the country face questions over profitability if machine duty is increased.
Last year, the pub giant achieved revenue of £73m from gaming machines alone, however if MGD is increased from 20 percent to 50 percent, Wetherspoons’ machine duty outgoings would jump from £27.5m to £45.7m.
“Sir Tim Martin, Wetherspoons founder, said an increase of this size would reduce the chain’s total post-tax profits by 48 percent, based on its current gambling revenues,” reported Punchline. “The group made £57.6m after tax last year.”
“Fruit machine revenues in Wetherspoons pubs grew by 11 percent in 2024, accounts for the year to 27 July show, outpacing bar and food sales, which rose 5.1 percent and 5 percent respectively…That followed a 10.8 percent rise in the previous year.”
Wetherspoon is far from the only pub operator expressing concern over the tax rise, with Star Pubs MD telling Business Matters that the sector already faces “tremendous pressure” following April’s Employer NICs.
“Our low-stakes machines are an important revenue stream. Any move that erodes their value puts further strain on our ability to serve communities up and down the UK.”
Amber Taverns’ executive chair James Baer agreed, describing the MGD increase as another “unwelcome setback,” while Greene King CEO Nick Mackenzie said the move may “inadvertently be the tipping point.”
In its latest figures, the BBPA predicted a 50 percent rate of MGD would cost pubs £187m every year, equivalent to more than 16,000 jobs.
Originally published on Coinslot on November 24, 2025. Republished with permission.