89 Labour MPs urge Chancellor to consider higher Machine Games Duty on Category B machines

A group of 89 Labour MPs has backed a letter calling for a higher duty on Category B gaming machines in the United Kingdom. The letter was written by Alex Ballinger, who chairs the All-Party Parliamentary Group for Gambling Reform, and is addressed to Chancellor John Healey, asking him to consider an increase in machine games duty (MGD).

Ballinger argues that gambling operators should not be allowed to keep the profits while families and communities pay the costs. He also says high streets should provide jobs and opportunity rather than high-harm gambling centres. The letter points to last year's increases in online gaming and betting taxes and asks that Category B machines be treated in a similar way.

The letter follows an earlier proposal to double MGD to 40%. It states that a 40% rate would raise between GBP 275 million and GBP 458 million a year for the economy. However, the text does not specify that any increase must take the rate to 40%. It also cites recent polling by the Social Market Foundation, which found that 43% of Britons support higher taxes on slot machines, while only 11% believe they should be reduced.

The industry reacted quickly. Speaking to NEXT.io, Grainne Hurst, CEO of the Betting and Gaming Council (BGC), said the concern shown by MPs for communities and high streets is commendable but their approach is misguided. She argued that higher taxes on betting shops and casinos would not make the market safer. The BGC has previously said that additional burdens make the regulated sector less competitive and strengthen illegal operators, while also leading to more shop closures, something it says has already followed earlier tax rises. Hurst said every closure means an empty shopfront, fewer jobs and another blow to Britain's high streets.

Bacta, the trade association for the land-based gaming sector, was also critical. It said a 40% MGD would be the final nail in the coffin of the British seaside, with thousands of jobs lost as a result.