UK Budget raises Machine Games Duty rate on Category B machines from April 2027

From April 2027, Category B machines in bingo halls, betting shops and casinos will fall under Machine Games Duty's higher rate, the UK Budget having reduced the threshold that triggers it. The duty keeps its three-rate design; only the level at which the top rate starts has moved. Carrying the measure falls to the Finance Bill 2026-27.

Today the 25% higher rate catches only machines that cost more than £5 a play, and the 20% standard rate applies to those costing 21p to £5. Once April 2027 arrives, either a maximum charge over £1 or a maximum prize over £100 will be sufficient to bring a machine within the higher rate. Pubs and seaside arcades continue to pay the lower rate.

Who owes the duty is the subject of a second change. HMRC's present guidance places no liability on suppliers, including those who take a share of the takings; instead the premises' responsible person registers and pays. Starting 1 April 2028, a supplier becomes liable for machines it owns and operates on profit-share arrangements. Operators of premises remain liable when they own a machine outright, or when they rent or lease it on fixed terms while controlling the takings.

The liability switch, taken together with the higher rate, is forecast to generate an additional £135 million in 2027/28 and £150 million in 2028/29. HMRC's consultation on supplier liability is open until 11:59pm on 20 January 2027, and it invites no comment on duty rates or on stake and prize limits.

Entain put the extra burden on its UK and Ireland retail costs at roughly £25m annually before any mitigation, a figure drawn from consensus forecasts for FY27 retail net gaming revenue. The company aims to absorb the whole cost by the end of 2028, using estate rationalisation, savings across the group and potential market share gains. It left both its FY26 guidance and its goal of £500m in annual adjusted cash flow for 2028 as they were.