UK raises machine games duty to 25% on higher-stake machines

UK Chancellor John Healey raised machine games duty (MGD) from 20% to 25% on higher stakes gaming machines, announced in his first Budget on 28 October 2026.

From 1 April 2027, the 25% rate will apply to machine games with stakes over £1 or prizes over £100, the government said. From 1 April 2028, machine suppliers will become liable for the duty on supplier-owned machines run under profit-sharing arrangements.

Revenue projections and industry response

The government expects the two changes together to raise £135 million in 2027/28 and £150 million in 2028/29.

The increase follows pressure from campaigners and lawmakers. The Social Market Foundation (SMF) think tank called in June for MGD on Category B machines to double to 40%. In October, 90 Labour MPs wrote to Healey backing a higher rate.

Industry operators had opposed the move. On 14 October, the chief executives of Entain, Evoke, Flutter UK & Ireland, bet365, Bally’s, and Betfred asked Healey to rule out a machine games duty rise. Analysis commissioned by the Betting and Gaming Council (BGC) claimed that doubling the duty could cost almost 16,000 jobs and close up to 1,470 betting shops and 34 casinos.

Impact on operators

Entain expects the rise in UK machine games duty from 20% to 25% to add about £25 million a year to the costs of its UK and Ireland retail business, before any mitigating measures. Entain expects to fully mitigate the impact by the end of 2028 through estate rationalisation, group-wide optimisation initiatives, and potential market share gains. Its FY26 guidance and its target of £500m annual adjusted cash flow in 2028 are unchanged, the company said.

After the announcement, Entain shares traded 4.68% higher at 473.90p, Rank Group rose 8.75% to 85.80p, and evoke gained 3.77% to 44.62p.

Additional measures

From April 2027, adult gaming centres (AGCs) and vape shops in England will lose access to the retail, hospitality and leisure business rates discount, according to the Budget document.

The consultation on supplier liability for machine games duty closes at 11:59pm on 20 January 2027, HMRC said.