A report ahead of the UK Budget says the chancellor may avoid doubling Machine Games Duty but could still raise it by 5%. Retail operators say any increase could lead to closures; the report gives no further details.
A possible duty increase could affect costs for UK retail gambling operators.
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The UK's machine games duty rate is expected to rise from 20% to 25% in next week's Autumn Budget, short of the 40% recommended by an influential think tank. The report did not state the source of the expected rate.
Ninety Labour MPs have called for an increase in machine games duty, while the Betting and Gaming Council objects. The letter cites Social Market Foundation estimates of up to £458m a year from a 40% rate. The source did not state the current rate or the government's response.
The UK’s machine games duty has risen to 25%, according to the report. Analysts said larger gambling operators may be able to absorb the increase, while Regulus warned that effects on cash flow and investment would emerge over several years.
The UK government will raise Machine Games Duty to 25% on machines with a maximum stake above £1 or a top cash prize above £100 from 1 April 2027. The Office for Budget Responsibility forecasts an additional £0.1bn in tax revenue in 2027-28; Entain estimated an annualised £25m cost to its UK and Ireland retail business, while Rank forecast £9m.
A headline reports industry criticism of a Machine Games Duty increase and says some viewed the decision as harmful while others welcomed it. The page text was unavailable, so the claims and responses cannot be detailed further.