British chancellor reportedly considering Machine Games Duty hike for Autumn Budget
New chancellor John Healey is said to be evaluating a proposal to double Machine Games Duty rates.
Key takeaways
- Media reports suggest that chancellor John Healey is considering proposals to double land-based Machine Games Duty.
- The minimum rate could rise from 5 to 10 per cent and the standard rate from 20 to 40 per cent.
- The Autumn Budget will be presented on October 28.
UK.- With the UK Autumn Budget announcement under two months away, it’s been reported that the new chancellor John Healey is very much considering the rise in Machine Games Duty proposed by the Social Market Foundation (SMF) and supported by former prime minister Gordon Brown. The Times has reported that ministers are examining the possibility of increasing the levy to provide extra revenue for defence spending and measures aimed at easing cost-of-living pressures.
It’s reported that the scenario being discussed would see Machine Games Duty (MGD) rates double, with the lower rate rising from 5 per cent to 10 per cent, the standard rate from 20 per cent to 40 per cent and the higher rate from 25 per cent to 50 per cent. Remote Gaming Duty for online slots was hiked to 40 per cent in April of this year.
Industry stakeholders, including the trade bodies Bacta and the Betting and Gaming Council (BGC) have already warned that any significant increase in MGD could have serious consequences for land-based gambling businesses and horse racing. Analysts have told the Racing Post that the proposal could result in almost 3,000 betting shop closures while reducing horse racing levy receipts by around £70m.
There have already been heavy shop closures as operators seek to offset the impact of April’s rise in Remote Gaming Duty. Flutter recently said it’s looking to close up to 100 Paddy Power shops across the UK and Ireland. As well as that hike for online casino gaming, the Autumn Budget delivered by Rachel Reeves last year also set out plans to raise General Betting Duty from 15 per cent to 25 per cent in April 2027.
The trajectory of the news on MGD has taken a similar path to last year’s announcements, which were proposed by the SMF and supported by Gordon Brown in interviews before press reports confirmed that the government was considering them in the weeks before budget day.
Healey will present what will be his first Autumn Budget on 28 October. The BGC has said that any major rise in Machine Games Duty “would put further pressure on betting shops, casinos and other venues, cost jobs and investment, weaken high streets and benefit the growing illegal gambling market”.
“By the end of 2026, more than 600 betting shops will have closed and 5,000 jobs will have been lost since last year’s budget following increases in remote gaming duty. Doubling tax on a land-based product would lead to more closures, further job losses and damage to the wider ecosystem that supports British racing.”
