Chancellor John Healey will not double Machine Games Duty, and share prices rose around 7% on the news. The revised 25% rate still lands in April 2027, and the British Horseracing Authority warns of a £57 million annual hit to the sport.
Machine Games Duty rises to 25% in April 2027, down from a feared 40%. EY modelling forecasts around 9,000 UK job losses and roughly 1,000 betting shop closures. The British Horseracing Authority expects a £57 million annual drop in funding, about 38% below the previous estimate.
- Machine Games Duty and the High Street
- Who Wins and Who Loses the MGD Hike
- The Horseracing Bill
- Frequent Questions About the Tax Hike
Chancellor John Healey will not double Machine Games Duty, and share prices rose around 7% on the news. The revised 25% rate still lands in April 2027, and the British Horseracing Authority warns of a £57 million annual hit to the sport. The market celebrated relief, but the venues that carry the bill are still left holding the line.
Steve Grech, CEO-EU of Trust Payments, welcomed the clarity of the government’s position and the avoidance of the feared 40% duty. He underlined that the revised rate is still a heavy burden for operators with narrow margins. Grech said the April 2027 start date gives businesses time to review pricing, machine mix and investment plans. “The worry is that tax will migrate to responsible, regulated online offerings,” he said.
Machine Games Duty and the High Street
The Betting and Gaming Council condemned the rise as “deeply damaging.” Grainne Hurst, chief executive, cited independent EY modelling forecasting nearly 9,000 job losses and the closure or severe risk of closure to around 1,000 betting shops and casinos. Hurst warned that shuttered venues could hollow out high streets and inadvertently strengthen illegal gambling operators.
Major operators echoed these concerns. Entain, one of the UK’s largest retail names, estimated an annual cost of around £25 million for its UK and Ireland operations. Stella David, chief executive, said the projected increase in retail operating costs has fallen by £75 million after the revised rate, but stressed that the change would push more people toward unregulated markets. Entain signalled that it would manage the impact through estate rationalisation and operational optimisation.
Who Wins and Who Loses the MGD Hike
The All-Party Parliamentary Group on Gambling Reform took the opposite view. It welcomed both the Machine Games Duty increase and the removal of business rates relief for adult gaming centres, arguing that higher harm products should carry a higher tax rate. Co-chair Alex Ballinger MP had campaigned for a doubling just days before the decision, and the APPG said the government’s revised approach was a step in the right direction.
Nicole Garrett, chief executive of the Bingo Association, focused on investment. She said clubs cannot invest for the future when every Budget brings Machine Games Duty a fresh tax threat. “This tax raid undermines the government’s own pledge to deliver growth in every postcode,” she said. The government had scrapped Bingo Duty and promised to back British bingo in April, and Garrett said it had clawed most of that support back six months later.
The Horseracing Bill
Mark Renshaw, chief executive of Spotlight Sports Group and publisher of the Racing Post, pointed to a wider squeeze on the sport. More than 600 betting shops have closed or announced closures since the last Budget, he said, and that has cost the industry an estimated £17 million in Machine Games Duty levies and media rights payments. Renshaw said the ecosystem must be sustainable as a whole, not just one part of it.
AGBrief has been tracking how UK tax policy reshapes the high street.
The British Horseracing Authority issued a stark warning. Brant Dunshea, chief executive, said the sport draws nearly one-third of its £350 million annual funding from high-street betting contributions. The tax rise could depress revenues by up to £57 million a year, down 38% from the earlier Regulus estimate if the duty had been doubled. Dunshea said the shortfall threatens prize money, racecourse operations, employment and horse welfare initiatives. “This change could prove devastating for the future of our sport,” he said.
Dunshea emphasised that horseracing is the only sport in receipt of a statutory levy from the betting industry, and said the authority intended to engage with the government to reduce the impact.
Frequently Asked Questions
When does the new Machine Games Duty rate take effect?
The revised rate takes effect in April 2027. Chancellor John Healey has confirmed that Machine Games Duty will not be doubled, so the rate will stand at 25% rather than the 40% some operators feared.
How much will the increase cost the betting sector?
EY modelling forecasts nearly 9,000 job losses and around 1,000 betting shops and casinos at risk of closure. Entain puts its annual UK and Ireland cost Machine Games Duty at roughly £25 million, down £75 million from the earlier projected increase.
What does the rise mean for horseracing?
Horseracing derives nearly one-third of its £350 million annual funding from high-street betting contributions. The British Horseracing Authority warns the tax could cut revenues by up to £57 million a year, about 38% below the previous Regulus estimate.
Why did share prices rise?
Investors welcomed the avoidance of the feared 40% rate and the April 2027 start date. Entain and Rank Group shares rose approximately 7%, reflecting confidence that operators can adjust pricing, machine mix and investment plans in time.
Will the tax move to online gambling?
Trust Payments chief Steve Grech warned that tax may migrate to responsible, regulated online offerings. The April 2027 start date gives operators a window to review pricing and machine assortments, but it does not remove the pressure on retail margins.
Why did the APPG welcome the hike?
The APPG on Gambling Reform backed both the Machine Games Duty increase and the removal of adult gaming centre business rates relief. Alex Ballinger MP, the group’s co-chair, had campaigned for a doubling just days earlier. The group says higher harm products should be taxed at a higher rate.
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