UK Treasury Eyes Doubling Machine Games Duty on Slots

With the October Budget drawing closer, the Treasury is reportedly turning its attention to the slot machines sitting on casino floors, in adult gaming centres and behind betting shop counters. Reports suggest Chancellor John Healey is looking at doubling Machine Games Duty, a move that would land squarely on the physical cabinets many players use alongside their online accounts.

What’s been released

Nothing has been confirmed yet, but the direction of travel is clear enough that operators and trade bodies are already reacting.
Chancellor John Healey is looking for extra revenue ahead of the October budget, with the UK Treasury looking at a range of options to increase the Machine Games Duty, which is levied on electronic gaming machines in casinos, adult gaming centers, bookmakers, bingo halls and other venues
. The plan under discussion would see rates roughly double:
from the lower rate of 5% to 10%, the standard rate of 20% to 40%, and the higher rate of 25% to 50%
.

A government insider quoted by The Times put it bluntly, telling the paper that
increases in gambling taxes are “definitely on the table again”
for the 28 October Budget. The idea originated with the Social Market Foundation think tank, and research cited by the Treasury suggests the numbers involved are substantial:
one proposal being looked at would see Machine Games Duty rise to 40% for machines outside pubs, which the Social Market Foundation estimates could raise GBP 458 million ($619 million) a year for the government
.

What’s changed

For now, nothing has actually changed on the casino floor, but the scope of what’s being discussed matters for anyone who plays machines in person rather than online.
This time the target would be land-based slot machines, after retail gambling operations escaped all hikes in last year’s budget
. Category B machines, the higher-stake cabinets found in casinos and adult gaming centres, appear to be the main focus, following
thinktank proposals earlier this year to double the tax from 20% to 40% on Category B machines, which feature a £2 max stake every 2.5 seconds
.

Not every machine looks likely to be swept up in the same way. One source close to the discussions suggested pubs and bingo halls could be spared the worst of it, while
“Andy hates adult gaming centres,” but “like all politicians, he loves bingo halls and pubs,” adding that they would probably need carve-outs if the government does go after machine games duty
. Industry groups have pushed back hard regardless. The Betting and Gaming Council warned that a rise
would put further pressure on betting shops, casinos and other venues, cost jobs and investment, weaken high streets and benefit the growing illegal gambling market
, while separate analysis passed to the Racing Post suggested the change
could lead to nearly 3,000 shop closures and a reduction of the all-important horse racing levy by some £70m
.

Where it fits

This would be the second successive Budget to squeeze the sector. Last year’s Autumn Budget already reshaped the online side of the market when Rachel Reeves pushed
a near-doubling of Remote Gaming Duty from 21% to 40%
, a change that
was implemented in April
, with General Betting Duty due to follow,
rising from 15% to 25% in April 2027
. Land-based machines were left alone that time round, which is partly why this proposal feels like unfinished business rather than something entirely new.

Whether any of this reaches players directly is still an open question. If operators respond by thinning out machine numbers in casinos and AGCs, the effect on what’s physically available to play on a UK high street could be more noticeable than the tax rate itself. The Treasury, for its part, is sticking to its usual line, with a spokesperson only willing to say that
the chancellor will set out decisions at fiscal events, rather than routinely commenting on rumour, speculation or proposals
. Confirmation, or otherwise, will have to wait until the Budget itself lands on 28 October.

Sources

• Gambling News – UK Looks at Bigger Slot Machine Tax to Boost Budget
• SBC News – Chancellor John Healey ponders doubling Machine Games Duty
• NEXT.io – UK chancellor reportedly mulling slot machine tax hike
• FocusGN – British chancellor reportedly considering Machine Games Duty hike for Autumn Budget
• Gaming.net – UK Treasury Weighing Up New Hikes on Slots at Casinos, AGCs and Betting Shops
• InterGame Online – Report: UK government eyeing Machine Games Duty rise