UK Gaming Hall Sector Prepares Evidence-Based Defense Ahead of Potential Tax Increases in Autumn Budget

The UK’s gaming and amusement hall trade body Bacta is preparing submissions for the Autumn Budget. It will combine economic modelling and the lived experience of members to argue against tax rises on the land-based sector.

Submissions must be filed by September 9, seven weeks before John Healey presents the budget on October 28. Healey was appointed Chancellor of the Exchequer on July 20 by Prime Minister Andy Burnham. This marks the first budget under the new government.

The land-based sector escaped tax changes in the 2025 Autumn Budget. That statement raised Remote Gaming Duty from 21 to 40 per cent effective April 2026 and general betting duty on online sports wagers (excluding horseracing) from 15 to 25 per cent from April 2027. Bingo duty was scrapped entirely.

The influential Social Market Foundation has since proposed increasing Machine Games Duty on Category B slot machines to 40 per cent. These devices, the most common in UK betting shops, arcades and bingo halls, currently face 5 per cent on stakes up to 20p, 20 per cent on stakes up to £5, and 25 per cent on stakes above £5. A Bacta member survey found 90 per cent fear a “severe negative impact.” The government also plans to reduce business rate relief for high street gaming halls from April 2027 for businesses deemed to have a “negative impact.”

Building the Strongest Possible Case

Joseph Cullis, Bacta President, said the body would repeat its “evidence-based strategy.” As reported by Focus Gaming News, Cullis stated: “We have an extremely small window to present Bacta’s case for a progressive tax framework that will enable the industry to contribute to the Government’s growth agenda rather than a regressive framework that will inevitably lead to business closures, job losses and the migration of players from the regulated to the unregulated gaming sector.”

He added: “The impact that a significant uplift in Machine Games Duty would have on members is both frightening and stark. Although representing a direct hit on Britain’s land-based gambling sector, it’s naïve in the extreme to assume the damage would stop there.” Cullis noted the effects would reach high streets, seaside towns, social clubs, piers, family entertainment centres, bingo premises and the supply chain of manufacturers, suppliers and small businesses.

The submission will draw on members such as Charles Holland. Cullis said Holland has detailed how an MGD increase would present businesses with three options: absorbing costs through reduced profitability, raising the cost of playing non-gaming equipment, or reducing staffing levels. The conclusion, Cullis stressed, is that a substantial increase in turnover tax would reduce the ability of Bacta members to invest, make expansion less attractive, put pressure on jobs and ultimately reduce economic activity.

Where the Risk Lies

In my three decades advising gaming operators, investors and regulators, submissions grounded in both data and real operator experience tend to carry more weight than broad assertions. The narrow submission window makes this preparation an inflection point for the sector. Operators should compile their own supporting evidence now rather than wait for the outcome.

The open question is whether Healey’s government will view land-based gaming as a contributor to growth or primarily through the lens of social impact. A punitive regime risks exactly the closures and job losses Bacta forecasts, shifting activity to unregulated channels at the worst possible time.

Reporting: Focus Gaming News