Labour MPs & big operators collide over gambling tax rise

Six major operators co-signed a rival letter this week urging the Chancellor to rule out any MGD increase.

The hit

90 MPs have signed a letter demanding Chancellor John Healey raise Machine Games Duty on Category B gaming machines, according to SBC News. The letter, written by Labour MP Alex Ballinger, targets adult gaming centres & leaves pub fruit machines & bingo games themselves untouched.

Why it matters

A rise would hit betting shops, bingo halls & adult gaming centres that rely on Category B machines for income. The Social Market Foundation reckons it could raise hundreds of millions a year, but operators warn of shop closures & job losses if it lands.

The record

Proposed MGD rate	40% on Category B machines (Alex Ballinger)
Potential annual tax raised	£275m-£458m (Social Market Foundation)
AGCs in most deprived fifth	47% (Alex Ballinger)
Operators opposing rise	Entain, Flutter UK & Ireland, bet365, Bally’s Corporation, evoke, Betfred (BGC letter)
Ballinger’s Gambling Commission corrections	3 since early 2025 for misuse of statistics (SBC News)

What happens next

Watch the Budget announcement this month for whether Healey raises MGD, & whether the BGC’s rival lobbying push persuades the Treasury to rule out the rise & pause the planned General Betting Duty rise.

Sources: Labour MPs pile pressure on Healey to up gambling taxes

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