UK Chancellor John Healey Expected to Limit Machine Games Duty Rise to 25%
Unnamed sources have told The Times that John Healey will present an Autumn Budget on 28 October putting MGD up by 5%. An increase to 25% from the current 20% rate will give the land-based betting and entertainment industry a much needed sigh of relief after the Social Market Foundation called for doubling MGD to 40%, echoed by 90 Labour MPs and Gordon Brown.
SCCG Take — A 25% rate validates coordinated lobbying but leaves land-based margins exposed to further high-street attrition. Regulators and operators should monitor actual closure data post-Budget to assess whether the moderated duty avoids the job and levy losses projected at 40%.
Chancellor of the Exchequer John Healey is set to raise Machine Games Duty by 5% in the Autumn Budget on 28 October. Unnamed sources told The Times that an increase to 25% from the current 20% rate will give the land-based betting and entertainment industry a much needed sigh of relief. The adjustment offers the land-based betting and entertainment sector a measure of relief after months of uncertainty.
Pressure for steeper hikes built from a June report by the Social Market Foundation that urged a doubling to 40%. That position gained traction with a letter co-signed by 90 Labour MPs, written by Alex Ballinger. Former Prime Minister Gordon Brown had also publicly called for an MGD increase to fund cost-of-living measures, having previously pushed for rises in remote gaming and general betting duties that took effect in 2025. Current Prime Minister Andy Burnham has voiced criticism of adult gaming centres and supported limits on betting shops.
Sector Warnings on Closures and Jobs
The gambling industry responded with intensified lobbying. Grainne Hurst, CEO of the Betting and Gaming Council, stated that higher taxes on betting shops and casinos would not protect communities as every closure means fewer jobs, another empty shop front and another blow to Britain’s high streets. Allaster Gair of Bacta warned against the self-harm an MGD increase would cause to the tourism industry, which generates £127bn annually.
Abbie MacGregor, Director of Corporate Affairs at the Greyhound Board of Great Britain, described the policy risk as “taking with one hand, and then taking with the other.” She noted that greyhound racing depends on betting shops, and closures would reduce market share while shifting costs to the benefits system. Nicole Garrett, CEO of the Bingo Association, said that of the 239 clubs remaining, 102 would become loss-making at 40%, though the moderated 25% rate would limit the damage.
Where the Risk Lies
Horse racing faces indirect pressure. The sector relies on the Horserace Betting Levy, which would suffer if betting shops close. Flutter Entertainment recently cut 1,400 UK jobs, and sponsorship deals have already fallen 17% year on year. Fred Done, founder of Betfred, previously warned that a 40% rate could eliminate high street betting shops by 2030.
This increase to 25% from the current 20% rate shows the lobbying has narrowed the range of outcomes. Operators and venue owners must now prepare for the confirmed rate while tracking downstream effects on employment and related sports funding. The outcome will test whether measured fiscal adjustments can stabilise the land-based sector without triggering the widespread closures that higher rates threatened.
Reporting: SBC News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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