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Bacta warns MGD rise threatens UK land-based gaming businesses

Regulation2 min read

Bacta warned that a significant increase in the UK’s Machine Games Duty could cause venue closures, job losses and reduced investment in land-based gaming. In a survey of its members, 90% described the potential impact as severely negative and 87% said a tax rise would make lower investment very likely.

Bacta warned that a significant increase in UK Machine Games Duty could cause business closures, job losses and a halt to investment in land-based gaming. The warning follows a survey of members of Bacta, a UK trade association representing land-based gaming and amusement businesses.

All respondents said a significant duty increase would have a negative effect on their businesses. Of those surveyed, 90% said the impact would be severely negative and 10% said it would be moderately negative. Bacta said 87% believed an increase would make a fall in investment very likely.

Asked to identify their main challenge from a duty increase, 67% cited remaining profitable, 23% maintaining staffing levels and 10% investment in new machines and refurbishment. The most likely consequences identified were the closure of some Adult Gaming Centres, cited by 43%, lower profitability by 30% and fewer jobs by 27%.

Machine Games Duty applies to net takings from machine games subject to the tax. HMRC guidance sets rates of 5% for lower-rate machines, 20% for the standard rate and 25% for the higher rate. The survey was conducted before Andy Burnham was confirmed as UK prime minister on 20 July 2026.

Bacta president Joseph Cullis said higher taxes would harm businesses and their supply chain, and that a contraction of the licensed sector would benefit illegal and unregulated gambling. Cullis said many coastal piers and arcades rely on gaming-area income to remain viable year-round, support jobs and maintain coastal attractions and buildings.

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