The new rate is set to apply from April 1, 2027. From April 2028, duty on supplier-owned machines under profit-sharing deals will be paid by suppliers, with a consultation running until January 20, 2027. The government expects the changes to raise £135 million in 2027/28 and £150 million in 2028/29.
John Healey, UK Chancellor, said:
“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.”
Addressing the hikes, the Betting and Gaming Council (BGC) said EY modeling at the 25% rate points to almost 9,000 job losses and nearly 1,000 betting shops and casinos closing or at serious risk.
Grainne Hurst, BGC CEO, 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.”
At the same time, the British Horseracing Authority has estimated that racing could lose £57 million a year, while the Bingo Association said the rise claws back around £13 million of the £22 million annual saving from the abolition of Bingo Duty in April.
