90 Labour MPs urge higher machine games duty ahead of UK Budget

Ninety Labour MPs have signed a letter to Chancellor of the Exchequer John Healey calling for higher taxation on category B gaming machines. The letter was led by Alex Ballinger, MP for Halesowen and co-chair of the parliamentary group on gambling reform, and was signed by Ballinger and 89 other MPs. It was sent ahead of the Budget on 28 October.

The letter asks the government to introduce a higher rate of Machine Games Duty, which is currently 20% for the machines concerned. It cites a Social Market Foundation proposal to double the duty to 40%, though the document does not formally name that percentage as the rate requested. The proposal concerns category B3 machines in particular, which allow stakes of up to £2 and maximum winnings of £500. Any increase would also affect machines in betting shops and bingo halls, while the MPs' approach aims to preserve lower categories and avoid further charges on pub machines.

The initiative centres on Adult Gaming Centres, the venues dedicated to gaming machines. According to data cited by Ballinger, 47% of these businesses are concentrated in the fifth of areas that are most deprived, and in areas with greater economic difficulty the per-capita presence is more than six times higher than in wealthier areas. The report describes these as figures cited by the MP in support of his position.

The Social Market Foundation estimates that a 40% rate could generate additional tax revenue of between £275m and £458m a year. The letter also cites a poll in which 43% of respondents said they favoured an increase in taxes on slot machines in betting shops. Ballinger argues that gambling operators should contribute more to the social costs associated with the activity; the stated aim is to strengthen protection for local communities and to address the concentration of venues in the most vulnerable areas.

The letter comes amid an existing debate on UK gambling taxation. In April 2026 Remote Gaming Duty, which applies to online gambling, rose from 21% to 40%, and from April 2027 the tax on online betting is due to rise to 25%, with some exceptions. Industry associations and major operators have opposed the prospect of further increases. The Betting and Gaming Council recently wrote to the government warning of betting shop closures and job losses, and companies say a further tax increase could affect the economic viability of many businesses.