UK Gambling Industry Condemns Healey’s Rise in Machine Games Duty to 25%

Chancellor John Healey has increased Machine Games Duty from 20% to 25%. The Office for Budget Responsibility (OBR) expects the measure to lift betting and gaming receipts by 31% to £5bn in 2026/27, with average annual growth of 3.4% thereafter to £6bn in 2031/32. The new rate alone is forecast to generate £100m annually from 2027/28.

Entain, which operates Ladbrokes and Coral, stated the change will deliver an immediate £25m impact on its UK and Ireland business. Stella David, Chief Executive of Entain, commented: “The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities as well as customers.” The company expects full mitigation by the end of 2028 and left its FY26 guidance and £500m adjusted cash flow target for 2028 unchanged.

Sector Warnings of Closures and Community Harm

The Betting and Gaming Council (BGC) described the decision as “deeply damaging.” Grainne Hurst, CEO of the BGC, added: “This is a deeply damaging decision and a blow to the thousands of workers, businesses and communities who depend on Britain’s regulated betting and gaming industry.” Citing EY data, the BGC warned nearly 9,000 jobs are at risk alongside around 1,000 betting shops and casinos, with particular effects in the North of England and Scotland. It said closures will hand an advantage to illegal operators.

Brant Dunshea, CEO of the British Horseracing Authority (BHA), noted the rise “could still prove devastating for the future of our sport – impacting prize money, the viability of racecourses, thousands of jobs; and vital horse welfare projects and research.” The Bingo Association forecast 77 clubs becoming loss-making, with hardest hits in the Midlands and North, and warned this will worsen social isolation and loneliness. As reported by SBC News, the sector had lobbied against further rises after the prior Remote Gaming Duty increase.

Where the Risk Lies

The layered tax increases since 2025 heighten pressure on retail viability and licensed operators’ ability to sustain jobs and high-street presence. The immediate risk is accelerated closures that cannot easily be replaced in weaker regional economies, while any slower-than-expected mitigation could erode the OBR’s projected receipts. Operators and trade bodies must now convert stated engagement with government into concrete relief measures before further venue losses materialise.