UK Chancellor of the Exchequer John Healey is considering doubling Machine Games Duty in the Autumn Budget, The Times reports. The government is looking for funds to cover defence spending and rising costs, but the gambling sector faces severe losses if the measure goes through.
If MGD rates double — from 5% to 10% in the lower category, 20% to 40% in the standard band, and 25% to 50% in the highest tier — the industry expects a wave of closures. Racing Post analysts warn that doubling the duty would force nearly 3,000 betting shops to close and cut contributions to horse racing by £70 million.
Gordon Brown floated the same idea earlier, proposing to use the revenue to offset rising fuel costs. Politicians have repeatedly called for higher gambling taxes to fund the NHS, children's programmes or grassroots sport.
The sector has not recovered from last year's hit. In autumn, Rachel Reeves raised Remote Gaming Duty from 21% to 40%, with the change taking effect in April. At the same time, she announced an increase in General Betting Duty from 15% to 25% by April 2027. The impact is already visible in results from Entain, evoke, Flutter Entertainment and FDJ United: mid-tier operators may not survive the pressure, and larger players will take their share.
The Betting and Gaming Council warns that further measures will push more punters to the black market and hurt employment. BGC data shows that over 600 shops will close and 5,000 jobs will be lost by the end of 2026 as a result of tax rises already in place. Doubling MGD would accelerate the process and damage the entire ecosystem, including British racing.
