UK raises MGD to 25% from April 2027
The UK government has raised Machine Games Duty (MGD) to 25%, taking effect in April 2027. The industry warns of nearly 9,000 job losses and the closure or severe risk of closure for about 1,000 betting shops and casinos, while Entain and Rank Group shares rose approximately 7% after Chancellor John Healey ruled out a feared 40% rate.
Trust Payments CEO-EU Steve Grech said the deferral gives operators time to review pricing, machine mix and investment plans. He also warned that higher taxation could shift activity towards regulated online platforms, while the rate remains a significant burden for operators with narrow margins.
Retail operators face higher costs
The Betting and Gaming Council called the increase 'deeply damaging'. EY modelling cited by BGC chief executive Grainne Hurst forecasts nearly 9,000 job losses and the closure or severe risk of closure for approximately 1,000 betting shops and casinos. Entain estimates the rise will cost its UK and Ireland retail operations about £25 million annually, £75 million less than under the earlier doubling proposal, and plans to manage the impact through estate rationalisation and operational optimisation.
Bingo Association CEO Nicole Garrett said the government had scrapped Bingo Duty and promised support for British bingo in April before clawing back most of it. Spotlight Sports Group CEO Mark Renshaw said more than 600 betting shops had closed or announced closures since the last Budget, costing horseracing an estimated £17 million in levy and media rights payments.
The British Horseracing Authority said the tax rise could reduce annual revenue by up to £57 million. Nearly one-third of horseracing’s £350 million annual funding comes from high-street betting contributions, making prize money, racecourse operations, employment and horse welfare programmes vulnerable. Chief executive Brant Dunshea said the authority intends to engage with the government on reducing the policy’s impact. The All-Party Parliamentary Group on Gambling Reform welcomed the MGD increase and the removal of business rates relief for adult gaming centres, citing the social harm associated with those products.
