What the Treasury is weighing
UK Chancellor John Healey is considering an increase in Machine Games Duty on slot machines ahead of the budget on 28 October, as the Treasury looks for revenue against tight public finances. The Times reported the review.
The focus is Category B machines, which carry a maximum stake of £2 every 2.5 seconds. Earlier this year the Social Market Foundation proposed doubling the tax from 20% to 40%. A government source told the paper: 'Tax rises on gambling are definitely back on the table.' Adult gaming centres would be first in line, while bingo halls and pubs are likely to be exempted.
Industry pushback
Healey faces a hard budget, with billions of pounds needed for social measures and defence. His predecessor Rachel Reeves also discussed an MGD rise but ended up raising the online gambling tax instead, taking the rate for digital casinos to 40% from April. Operators tie closures of land-based venues to those online tax rises, while also naming energy costs and higher national insurance contributions. A further MGD increase would speed the retreat from the high street. Modelling by Regulus Partners indicates that at 40% most betting shops and slot venues in the country would close, and the expected tax gain would not appear.
The Betting and Gaming Council opposes any increase in MGD. The council warns it would bring more closures, job losses and growth in the illegal market. A Treasury spokesperson declined to comment on speculation and said decisions would be announced at fiscal events.
