UK industry bodies warn of job and shop losses as Machine Games Duty rise is confirmed for April 2027

The increase in Machine Games Duty (MGD) due to take effect in April 2027 has drawn sharp criticism from UK gambling and racing bodies. They warn of job losses, betting shop closures and a significant financial hit to horseracing. Markets reacted with relief, however, after it emerged that the duty would not be doubled as had been feared.

Steve Grech, CEO-EU of Trust Payments, welcomed the clarity and the avoidance of a feared 40% duty. He stressed that the 25% rate is still a heavy burden for operators with narrow margins. He said the April 2027 start date gives businesses time to review pricing, machine mix and investment plans, but cautioned that tax could migrate towards regulated online offerings. According to Grech, shares in Entain and Rank Group rose by about 7% after the announcement.

The Betting and Gaming Council called the rise deeply damaging. Chief executive Grainne Hurst cited EY modelling that projects nearly 9,000 job losses and the closure of, or serious risk to, around 1,000 betting shops and casinos. She warned that empty venues could hollow out high streets and strengthen illegal operators.

Entain estimated the annual cost to its UK and Ireland retail business at about £25 million. CEO Stella David said the changes would push more people towards the illegal market, though the company signalled it expects to manage the impact through estate rationalisation and operational optimisation.

Bingo Association CEO Nicole Garrett said clubs cannot invest while each Budget brings a new tax threat. She noted that the government scrapped Bingo Duty in April and promised to back British bingo, but has since taken back most of that support, putting hundreds of jobs at risk. She said clubs in the Midlands and the North would be hit hardest.

Horseracing representatives also raised concerns. Mark Renshaw, CEO of Spotlight Sports Group, publisher of the Racing Post, said more than 600 betting shops have closed or announced closures since the last Budget, costing the sport an estimated £17 million in levy and media rights payments. British Horseracing Authority chief executive Brant Dunshea said the sport draws nearly a third of its £350 million annual funding from high-street betting. He said the tax rise could cut revenues by up to £57 million a year, threatening prize money, racecourses, jobs and horse welfare. The BHA intends to engage with the government on reducing the impact.

Not all reaction was negative. The All-Party Parliamentary Group on Gambling Reform welcomed both the MGD increase and the removal of business rates relief for adult gaming centres. The group has long argued that higher-harm products should be taxed at higher rates.