Machine Games Duty doubling on the cards for Autumn Budget
Chancellor John Healey is reportedly looking at doubling Machine Games Duty (MGD) ahead of the Autumn Budget, per a story in The Times. The idea is to raise money for defence and to soften the cost-of-living squeeze, but it would land as another heavy tax hit on UK gambling. If it goes through, the lower MGD rate climbs from 5% to 10%, the standard rate from 20% to 40%, and the top rate from 25% to 50%. Healey hasn't said much about tax rises one way or another. Analysts, though, are already warning of serious fallout.
Those warnings, as carried by the Racing Post, put the potential damage at nearly 3,000 betting shop closures. The horse racing levy could shrink by around £70m. That's a number that matters, because the levy is what funds British racing directly. Any dent in it ripples straight through the sport's finances. The chatter comes hot on the heels of Gordon Brown's call for a duty hike to help with domestic fuel bills this winter. It's not a new idea, either. Politicians have spent years pushing gambling tax rises to pay for things like the NHS, grassroots sports, and child poverty programmes.
An MGD increase would stack on top of what Rachel Reeves did last Autumn, when she nearly doubled Remote Gaming Duty (RGD) from 21% to 40%. That landed in April. She also scheduled General Betting Duty to rise from 15% to 25% in April 2027. The early damage from the RGD change is already turning up in interim numbers from UK-focused operators like Entain, evoke, Flutter Entertainment, and FDJ United.
The worry is that mid-tier firms get squeezed out entirely, leaving the big players to hoover up their market share. And there's the old, nagging fear that higher taxes drive punters to the unregulated black market. The Betting and Gaming Council (BGC) has made that point more than a few times.
Now the BGC has waded into the MGD question directly. "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," a spokesperson said. "By the end of 2026, more than 600 betting shops will have closed and 5,000 jobs will have been lost since last year's budget following increases in remote gaming duty." They added: "Doubling tax on a land-based product would lead to more closures, further job losses and damage to the wider ecosystem that supports British racing."
For land-based operators, the timing is brutal. They're still digesting April's RGD increase, and a doubled MGD would punch straight at their physical venues. The BGC's figures lay it out plainly: over 600 shops gone since the last budget, 5,000 jobs lost, and both numbers rising. Whether Healey actually pulls the trigger is anybody's guess. But the direction of travel isn't subtle. Eyes will be on the Autumn Budget for the final MGD call, and it could redraw the high street betting map for a long time.