Report: UK Chancellor John Healey may lift Machine Games Duty to 25% in 28 October Budget

The Times has reportedly learned from unnamed sources that Chancellor of the Exchequer John Healey will raise Machine Games Duty (MGD) by five percentage points, from 20% to 25%, in the Autumn Budget due on 28 October. The report has not been confirmed. If it holds, the increase would be far smaller than some feared and would offer relief to the land-based betting and entertainment sector.

Pressure on MGD has built for months. In June, the think-tank Social Market Foundation called for the duty to double to 40%. A group of Labour MPs later co-signed a letter from Labour MP Alex Ballinger backing the same figure. Former prime minister Gordon Brown has also argued for a higher MGD to help fund measures against the rising cost of living. Industry stakeholders pay close attention to Brown's comments, as he came close to predicting the 2025 tax increases, when Remote Gaming Duty rose to 40% and General Betting Duty to 25%. MGD was spared that year. Current prime minister Andy Burnham has also voiced his dislike of Adult Gaming Centres and said local authorities should be able to limit the number of bookmakers in their areas.

The sector has responded with a coordinated lobbying campaign. Stakeholders point to knock-on effects across British sport. Horse racing receives funding through the Horserace Betting Levy, which could suffer if betting shops close, and bookmaker sponsorship of the sport is already reported to be down 17% year on year, according to the Racing Post. Flutter Entertainment recently announced 1,400 job cuts, and Betfred founder Fred Done has warned that a rise to 40% could leave the high street without betting shops.

Abbie MacGregor of the Greyhound Board of Great Britain said greyhound racing is fundamentally a betting shop product and that losing shops would make it hard for the sport to hold market share. She argued that the government would lose revenue elsewhere while potentially adding to the benefits bill.

Bingo is also exposed. Although bingo duty was abolished last year, Bingo Association CEO Nicole Garrett said that of the 239 clubs left, 102 would become loss-making if MGD doubled to 40%. She said clubs would close if MGD rises. Betting and Gaming Council CEO Grainne Hurst has urged MPs to weigh the effect of higher taxes on jobs, saying it is misguided to think higher taxes on betting shops and casinos would protect communities and high streets.