Reports suggest the Chancellor is now looking at raising Machine Games Duty to 25 percent, despite sustained industry warnings over the threat to jobs, investment and venue viability. It’s not the 40 percent pushed for by the anti-gambling lobby but even 25 percent will be a significant hit coming as it does on top of the recent Gambling Levy contributions, NIE rises, and the upcoming increase in Gambling Commission fees. How much more does the Treasury think high street gaming and gambling businesses can take?
Chancellor John Healey is reportedly preparing to increase Machine Games Duty from 20 to 25 percent in the Autumn Budget on 28 October, according to The Times.
The proposed increase would fall significantly below the 40 percent rate advocated by the Social Market Foundation and supported by 90 Labour MPs, following months of warnings from gambling and amusements trade bodies. The reported five percentage point rise would nevertheless increase operating costs for adult gaming centres, bingo clubs and betting shops, with industry representatives warning that further taxation could threaten already vulnerable venues.
“Government must avoid the self-harm that an increase in MGD will cause and in the process, help support the tourism industry which…generates £127bn annually for the economy,” commented Bacta communications director Allaster Gair.
Additional concerns have come from Bingo Association chief executive Nicole Garrett, who recently warned that 102 of Britain’s remaining 239 bingo clubs could become loss-making if MGD doubled to 40 percent. Betting and Gaming Council chief executive Grainne Hurst similarly cautioned against further pressure on high street operators.
“Every closure means fewer jobs, another empty shop front and another blow to Britain’s high streets,” she said.
And in a recent letter to the Treasury, Gambling Business Group chief Peter Hannibal stressed the damage that another tax and regulatory burden will have on high street operations including the several thousand members clubs. Responding to the latest news of a possible 5 percent increase, Hannibal reminded Coinslot that “you cannot tax the industry into growth – and it’s growth that the country needs to generate.”
Although the reported 25 percent rate would represent a less severe increase than previously feared, any rise would place further pressure on a sector already being squeezed by escalating operating costs and ongoing regulatory uncertainty. With the Budget just days away, the industry is left awaiting confirmation of the Treasury’s plans.
Originally published on Coinslot on October 26, 2026. Republished with permission.