Chancellor John Healey announced in his budget speech that the Machine Games Duty (MGD) on higher-rate gaming machines will rise from 20% to 25%. The new rate will take effect on 1 April 2027.
Before the budget, a 40% rate had been discussed. Healey said the increase is needed to pay for support for city centre high streets, and added that pubs and seaside amusement arcades will remain protected.
From April 2028, machines owned by suppliers and operating under a revenue-share arrangement will be taxed on the suppliers themselves. The consultation on this change runs until 20 January 2027. The government expects to collect £135 million in the 2027/28 financial year and £150 million in 2028/29.
The Betting and Gaming Council (BGC) cited EY estimates showing that at a 25% rate almost 9,000 people would lose their jobs, and around 1,000 betting shops and casinos would close or face serious risk. BGC chief Grainne Hurst called the decision “deeply damaging.”
The British Horseracing Authority estimated the loss to racing at £57 million a year. The Bingo Association said the increase would take back around £13 million of the £22 million in annual savings bingo gained when its duty was scrapped in April.
The consultation on the supplier tax closes on 20 January 2027. Until then, operators and gaming machine suppliers can submit their comments.
