UK government may raise Machine Games Duty to 25% instead of 40%

The UK government could limit an increase in the ordinary Machine Games Duty (MGD) rate to 25% from the current 20%, according to the Times. The five percentage point rise would be smaller than the doubling to 40% floated in recent months. The measure could be included in the Budget that Chancellor of the Exchequer John Healey presents on 28 October. No official confirmation has been given.

The 40% option had been supported by the Social Market Foundation think tank, former prime minister Gordon Brown and several Labour MPs, and had drawn concern among operators. The Betting and Gaming Council estimated that such a measure could close about 2,900 betting shops and put more than 21,000 jobs at risk, with effects also on funding for British horse racing.

The possible revision comes as the sector is already dealing with earlier tax changes. Remote Gaming Duty on online gambling rose from 21% to 40% in April 2026, and an increase in the online betting duty from 15% to 25% is scheduled for next year. On 20 October, Flutter Entertainment announced a restructuring plan that could involve up to 1,400 redundancies in the UK and Ireland, attributing the decision to the impact of tax increases.

A move to 25% for Machine Games Duty would reduce the size of the increase compared with the initial proposals, while adding further cost for businesses that use gaming machines. The final decision is expected with the presentation of the Budget.