UK Chancellor Considers Doubling Machine Games Duty Rates in Autumn Budget
TL;DR — Chancellor John Healey is weighing a doubling of Machine Games Duty rates from 5-25% to 10-50% in the Autumn Budget. This follows the Remote Gaming Duty rise from 21% to 40% and could cause 3,000 shop closures plus a £70m horse racing levy cut. Over 600 shops and 5,000 jobs have already been lost since last year’s measures.
SCCG Take — Further land-based tax hikes will accelerate shop closures and market consolidation while expanding the illegal sector. Operators and racing bodies must quantify cumulative impacts ahead of the budget to inform targeted engagement.
Chancellor of the Exchequer John Healey is considering a doubling of Machine Games Duty in the Autumn Budget, according to The Times. The proposal would lift the lower rate from 5% to 10%, the standard rate from 20% to 40%, and the higher rate from 25% to 50%.
The increase would help fund defence spending and ease the cost-of-living crisis. Industry analysts told the Racing Post that the change could trigger nearly 3,000 shop closures and cut the horse racing levy by £70m. The consideration follows earlier calls from Gordon Brown to raise the duty for fuel price relief.
Recent Tax Measures and Their Effects
Last year’s Autumn Budget under then-Chancellor Rachel Reeves nearly doubled Remote Gaming Duty from 21% to 40%, with the rise implemented in April. Reeves also set out plans to lift General Betting Duty from 15% to 25% in April 2027. Interim results from operators including Entain, Evoke, Flutter Entertainment and FDJ United already reflect the impact. Mid-tier operators face particular pressure, with concerns that consumers are shifting toward the black market.
BGC Warnings on Cumulative Harm
The Betting and Gaming Council has addressed the latest proposal directly. A BGC spokesperson said: “It 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.”
The spokesperson added: “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.”
As reported by SBC News, these successive tax rises continue to test the viability of both land-based and remote operations across the UK gambling sector.
Reporting: SBC News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Retail gaming is being taxed into oblivion while illegal operators thrive—consolidation and closures will accelerate through year-end.
We've seen this movie before in every market we work: punitive tax stacking doesn't fill treasuries, it hollows out compliant operators and feeds the black market. UK retail—already reeling from the online duty spike to 40%—now faces another body blow that will cut racing funding, eliminate jobs, and leave vulnerable consumers with fewer licensed options.
- Machine Games Duty could jump from 5-25% to 10-50% in Autumn Budget, following April's remote duty hike to 40%
- BGC warns of 3,000 more shop closures, £70m racing levy cut, and illegal market growth on top of 600 shops already lost
- Mid-tier operators and racing ecosystem face existential pressure as cumulative tax load becomes unsustainable
SCCG angle: SCCG works both sides of this divide—we help retail operators model tax scenarios and diversify revenue while connecting online platforms to compliance, payments, and responsible gaming infrastructure that keeps them competitive against illegal alternatives. Our UK and European regulatory network helps clients navigate policy shifts before they become crisis.
Gaming, betting and prediction markets — the desk’s read, every weekday.
Subscribe →