The UK government will raise Machine Games Duty from 20% to 25% for machines offering stakes above £1 or prizes above £100. The change will apply from April 1, 2027 and moves affected products into the higher duty band.
The HM Revenue & Customs policy paper says the measure is intended to apply a higher rate to machines associated with greater gambling harm while preserving the current treatment of lower-stake products. Duty is charged on net machine takings rather than customer stakes.
The 2026 Budget document links the additional revenue to support for retail, hospitality and leisure properties. The reform changes the stake and prize thresholds that determine which machines fall under the standard or higher MGD rate.
Betting and gaming businesses criticised the decision. An iGaming Brazil report summarises warnings of outlet closures and redundancies, but these are sector forecasts rather than confirmed job losses.
Reuters reported that industry-commissioned analysis had projected 1,470 betting-shop closures and 15,900 job losses under a larger proposal to double the duty. The final five-point increase is smaller, so those figures should not be treated as a forecast of the enacted policy's exact impact.
