The UK government will raise the higher rate of Machine Games Duty from 20% to 25% on 1 April 2027. The change applies to machine games with stakes above £1 or prizes above £100, bringing much of the Category B estate in betting shops, bingo halls, casinos and adult gaming centres into the new rate.
The thresholds and timing are set out in the official Budget 2026 document. Lower-stake machines will retain their existing rate, a distinction the government says is intended to protect pubs and seaside arcades. The Budget links revenue from the increase to a real-terms freeze in business rates for retail, hospitality and leisure properties.
A second reform changes who pays the duty in some commercial arrangements. From 1 April 2028, the machine supplier will become liable where it owns the machine and operates it with a venue under a profit-share agreement. The premises operator will remain liable when it owns the machine outright or uses one under a fixed rental or lease while controlling the takings.
HM Revenue & Customs has opened a 12-week consultation on implementing that liability change. It closes on 20 January 2027 and does not reopen the tax rate or stake and prize limits.
Reuters independently confirmed the rate rise, while the original CasinoBeats report focused on its impact across land-based gambling venues.
