Chancellor Weighs Doubling Machine Games Duty
Chancellor John Healey is reportedly considering doubling Machine Games Duty (MGD) in his first Autumn Budget on October 28, according to The Times, as the government looks for revenue to cover defence spending and cost-of-living support. The Betting and Gaming Council has rejected the reported plans.
The Times quoted a government source describing gambling tax increases as 'definitely on the table again' for the October 28 Budget. The scenario under discussion, as reported, would see all three MGD bands double: the lower rate from 5% to 10%, the standard rate from 20% to 40%, and the higher rate from 25% to 50%.
No formal proposal has been published by HM Treasury, and the figures reflect reported internal deliberation rather than a confirmed policy.
The idea traces back to a proposal from the Social Market Foundation, a UK think tank, which has also drawn public support from former prime minister Gordon Brown. The SMF has suggested limiting any increase to Category B machines specifically, arguing this would protect the hospitality sector, including pubs, from a broader hit.
Industry Pushback
A Betting and Gaming Council spokesperson said the organisation rejected the reported proposals, warning: 'It would put further pressure on betting shops, casinos and other venues, cost jobs and investment, weaken high streets and benefit the growing illegal gambling market.'
The BGC's response echoes warnings issued after April's rise in Remote Gaming Duty for online slots, to 40%, which operators have already cited when announcing shop closures; Flutter has said it is looking to close up to 100 Paddy Power shops across the UK and Ireland.
The Wider Tax Backdrop
Any MGD rise would come on top of other gambling tax changes already locked in. Last year's Autumn Budget, delivered by then-chancellor Rachel Reeves, set out plans to raise General Betting Duty from 15% to 25% from April 2027.
Machine Games Duty itself currently applies in three bands depending on the type of gaming machine and its maximum prize, covering takings from machines offering cash prizes, including slot, fruit and quiz machines on eligible premises.
Casino Games Hub
What Happens Next?
Healey will deliver his first Autumn Budget as chancellor on October 28, when any final decision on MGD rates would be confirmed.
Until then, the figures reported by The Times represent one scenario reportedly being modelled by Treasury officials rather than an announced measure, and the BGC's rejection signals the industry will continue to lobby against it in the weeks before the Budget.
This is Healey's first Budget since taking over as chancellor, and it lands with the government already committed to a series of gambling tax rises phased in over consecutive years.
Operators and trade bodies will be watching October 28 closely to see whether the reported MGD scenario survives contact with the final Budget document, or whether the SMF's narrower Category B-only proposal gains more traction in the final decision.
