HM Treasury raises machine games duty to 25% for higher-stake machines
Regulation2 min read
In brief
- UK Machine Games Duty on machines with stakes above £1 rises from 20% to 25% from April 2027.
- HM Treasury said the higher rate targets machines more closely linked to gambling harm.
- The rate for lower-stake machines is unchanged.
- Additional revenue will help fund a business rates freeze for retail, hospitality and leisure.
The UK Machine Games Duty rate for machines with stakes above £1 will rise from 20% to 25% from April 2027, under Budget 2026 published by HM Treasury on 28 October. The rate for machines with lower stakes remains at its current level.
In the revenue section of the document, HM Treasury said the increase applies to higher-risk machines, which it links more closely to gambling harm and which are commonly found in venues such as adult gaming centres. The government said the choice was intended to protect pubs and amusement arcades in seaside locations.
The additional revenue will help fund a freeze on business rates, the property tax on commercial premises, according to the Budget. The measure covers the retail, hospitality and leisure sectors, with the aim that no property in those sectors faces an increase in real terms.
The Budget sets a two-year freeze on rates for properties in the sector that do not receive other reliefs. From April 2027, businesses in the sector in England will see these taxes frozen in real terms, reduced or removed, the document states.
The duty increase is one of a small number of targeted choices through which the government aims to raise new revenue, the Budget states. It rules out general tax increases; other revenue measures include an additional temporary contribution requested from banks and higher taxes on income from property and savings.