Treasury counts on £655m from machine gaming tax rise
The Betting & Gaming Council warns the rise could cost jobs & shut betting shops & casinos.
The hit
HM Treasury reckons a new machine gaming duty rise will haul in £655m over five years, according to figures published on 30 October. Chancellor John Healey unveiled the 5% hike, to 25%, in Wednesday’s Autumn budget, pitched as funding for high street business rate relief. The increase will principally affect Category B machines, triggered by stakes above £1 or prizes above £100, from 1 April 2027.
Why it matters
For bookmakers & arcade operators, this means duty liability rises on machines that haven’t changed their takings. The government says the measure is not expected to have any significant macroeconomic impacts, a judgement that covers the wider economy, not individual businesses or local jobs. The Betting & Gaming Council, citing EY modelling, challenges that confidence.
The record
| Forecast 5-year total | £135m in 2027/28, then £130m a year for four years (HM Treasury, certified by the OBR) |
|---|---|
| Operators affected | 5,100 operators across 12,400 premises (HMRC) |
| Jobs at risk | Almost 9,000 jobs, nearly 1,000 shops & casinos at risk of closure (BGC/EY modelling) |
What happens next
HMRC will consider assessing revenue effects after two years of monitoring data. The Treasury says it keeps the flexibility to move machine stake & prize thresholds up or down, with no commitment to freeze gambling duties.
Sources: Treasury banks on simple action for £655m MGD tax raid
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