UK Sets Machine Gaming Duty at 25 Percent from April 2027 After Avoiding Feared Doubling

The UK government will raise Machine Gaming Duty to 25 percent effective April 2027. The confirmed rate spares operators from a feared jump to 40 percent but has drawn sharp criticism from industry groups citing job losses, venue closures and harm to connected sectors. Markets registered relief, with shares in operators including Entain and Rank Group climbing approximately 7 percent.

Industry Warnings Center on Jobs, Venues and Illegal Market Risk

The Betting and Gaming Council described the increase as “deeply damaging.” Grainne Hurst, BGC chief executive, pointed to independent EY modelling that forecasts nearly 9,000 job losses and puts approximately 1,000 betting shops and casinos at risk of closure or severe harm. Hurst added that shuttered venues would hollow out high streets and bolster illegal gambling operators.

Entain projected an annual cost of around £25 million for its UK and Ireland retail operations. Stella David, Entain CEO, stated: “These additional tax changes will further compound damage and push more people into the growing illegal market.” The Bingo Association warned that repeated tax moves undermine government growth pledges, with clubs in the Midlands and North hit hardest. CEO Nicole Garrett noted the government had scrapped Bingo Duty in April only to claw most of that support back six months later.

Horseracing Levy Impact and Mixed Reception from Reform Advocates

Horseracing faces an estimated £57 million annual revenue reduction. The British Horseracing Authority observed that nearly one-third of the sport’s £350 million annual funding comes from high-street betting contributions. Brant Dunshea, BHA Chief Executive, said: “This change could prove devastating for the future of our sport.” The figure is 38 percent lower than earlier projections tied to a doubled rate. Mark Renshaw, CEO of Spotlight Sports Group, noted more than 600 betting shops have closed since the last Budget, producing a £17 million loss in levy and media rights payments to racing.

The All-Party Parliamentary Group on Gambling Reform welcomed the duty rise and the end of business rates relief for adult gaming centres. The group has long pushed for higher taxation on products linked to greater social harm. According to iGaming Business, Steve Grech, CEO-EU of Trust Payments, called the April 2027 start date a window for operators to review pricing, machine mix and investment plans, while flagging the risk of tax migration toward regulated online offerings.

The levy-supported sectors now confront narrower margins and accelerated retail consolidation.