SCCG · Regtech

Labour MPs Call for Further Gaming Tax Hikes on UK Category B Machines

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Labour MPs Call for Further Gaming Tax Hikes on UK Category B Machines
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Some 89 Labour MPs have backed a letter calling for an increased Category B machine duty. Industry groups including the BGC and Bacta warn of more shop closures, job losses, and gains for illegal operators. Social Market Foundation polling suggests that 43% of Brits support higher slot machine taxes.

SCCG Take — The proposal underscores fiscal pressure on UK land-based operators following recent online tax rises. It risks hastening closures and shifting activity to unregulated channels without guaranteed harm reduction.

The United Kingdom recently increased its online gaming duties, forcing operators to close shops and streamline operations. Now 89 Labour MPs have backed a letter urging higher duties on Category B machines. The letter was authored by Alex Ballinger, who chairs the APPG for Gambling Reform, and is addressed to Chancellor John Healey.

Labour Support for Machine Gaming Duty Rise

Ballinger argues that gaming operators “should not be allowed to pocket the profits while families and communities pick up the bill.” He said high streets should create jobs and opportunity and not high-harm gambling centers. The letter references last year’s hikes to online gaming and betting taxes and calls for similar treatment of Category B machines.

It states that an MGD rate of 40% would benefit the economy by raising between GBP 275 million and GBP 458 million a year. The letter does not specify that any hike must reach exactly 40%. Polling by the Social Market Foundation shows 43% of Brits support higher slot machine taxes while only 11% believe taxes should be reduced.

Industry Counterarguments and Risks

Grainne Hurst, CEO of the Betting and Gaming Council, expressed disappointment with the MPs’ position. Hurst argued that higher taxes on betting shops and casinos will not achieve a safer market and will instead make the sector less competitive against illegal operators. The BGC has warned this will accelerate shop closures already seen after prior tax increases.

“MPs calling for higher taxes should consider the consequences for the very communities they say they want to protect. Every closure means another empty shopfront, fewer jobs and another blow to Britain’s high streets.” Bacta, the land-based gaming trade association, said embracing a 40% MGD would put the final nail in the coffin of the British seaside and result in thousands of lost jobs. This development, according to reporting by GamblingNews, highlights the tension between fiscal aims and the operational viability of licensed land-based gambling. Further tax rises could compound existing pressures without clear evidence they will reduce harm as intended.

Reporting: GamblingNews

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.

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