UK Budget sets 25% Machine Games Duty rate from 2027

Higher-stakes gaming machines in the UK will be taxed at 25% from April 1, 2027, up from the current 20% Machine Games Duty (MGD) rate, under plans set out by Chancellor John Healey.

Healey presented the rise to Parliament as a way to fund his high street measures:

“Madam Deputy Speaker, to pay for this support for our high streets, I’m raising taxes on gambling by increasing Machine Games Duty from 20% to 25% for higher-stakes machines, whilst protecting pubs and seaside arcades.”

The government projects the measures will raise £135 million in 2027/28 and £150 million in 2028/29. Before the Budget, the rate on the table was 40%.

A further change comes in April 2028. From then, MGD on supplier-owned machines run under profit-sharing deals will be paid by the suppliers, not the venues. The consultation on these plans closes on January 20, 2027.

Racing and bingo also expect to be hit. The British Horseracing Authority puts the potential loss to the sport at £57 million a year. The Bingo Association said around £13 million of the £22 million that bingo operators have saved each year since Bingo Duty ended in April will now be lost.

BGC CEO Grainne Hurst said: “This is a deeply damaging decision and a blow to the thousands of workers, businesses and communities who depend on Britain’s regulated betting and gaming industry.”

The Betting and Gaming Council (BGC) pointed to EY modeling, which suggests the 25% rate puts nearly 9,000 jobs at risk and could leave close to 1,000 betting shops and casinos closed or under serious threat.