Cuts and closures expected after UK rise in gaming machine tax
Government raises Machine Games Duty to 25% for stakes over £1, industry warns of job losses
Key Takeaways
- On 30 October 2026 the UK Government raised Machine Games Duty from 20% to 25% for machines with stakes over £1.
- In April 2026 the remote gaming tax increased from 21% to 40%, and online sports betting tax will rise from 15% to 25% in April 2027.
- The Betting and Gaming Council cited an EY study forecasting up to 9,000 jobs lost and 1,000 betting‑shop closures as a possible consequence.
- Operators including Entain, Flutter and Bet 365 and the operator evoke warned of job cuts and high‑street closures due to increased cost pressures.
The UK Government has increased the tax on gaming machines with stakes over £1 from 20% to 25% of gross gaming yield, Chancellor of the Exchequer John Healey announced in the Autumn Budget published on 30 October 2026. The measure applies to machines with stakes above £1 and adds to the earlier change in remote gaming taxation communicated in April 2026.
By Miguel Sandoval, Regulatory Correspondent.
What the fiscal package includes and its timetable
The announced increase raises the Machine Games Duty (MGD) from 20% to 25% on gross gaming yield for machines with stakes over £1. Downing Street and the Treasury reportedly considered rates as high as 40%, but the final rise was set at 25%. This adjustment follows the April 2026 increase in the remote gaming tax (online casinos and poker) from 21% to 40%, and a planned rise in online sports betting tax from 15% to 25% in April 2027.
Chancellor John Healey made the announcement in this week’s Autumn Budget, published on 30 October 2026.
Industry reactions and estimated impact
The Betting and Gaming Council (BGC) expressed “deep disappointment” at the budget announcement. The trade body cited an EY study warning that up to 9,000 people could lose their jobs and up to 1,000 betting premises could close as a result of the tax rise.
Grainne Hurst, chief executive of the Betting and Gaming Council, said:
“This is a deeply damaging decision and a blow to the thousands of workers, businesses and communities who depend on Britain’s regulated betting and gaming industry.” — Grainne Hurst, Betting and Gaming Council
Hurst accused the Chancellor of ignoring repeated warnings about the potential cost of the tax increase. The BGC added that the rise could “cost British jobs, close businesses and hollow out high streets, while handing an advantage to illegal operators.”
The Gambling Business Group, another industry association, noted that planned increases to the national living wage in 2027 will add further pressure on retail premises.
Per Widerström, chief executive of evoke — the global operator that owns the William Hill brand and its UK retail estate — said the MGD rise “comes at a time when the industry is already facing significant cost pressures, and risks further job losses and betting shop closures on high streets across the country.” He added that increasing the tax burden “risks driving more people towards the black market, which do not provide the same safeguards and protections.”
Consultant analysis and expected effects on operators
Alun Bowden, head of strategic insight at Eilers & Krejcik, said Tier 1 operators such as Entain, Flutter and Bet 365 face a difficult period: “Bonusing is already on the floor, overrounds are up, content and data costs are going up not down and this is a market without any meaningful growth in a long time and no sign of much in future.” Bowden predicted the UK will remain a strong market but said there will likely be job cuts and further consolidation in the sector: “This is not to say the UK is in freefall or a doom loop, it's just that things are probably going to get worse before they get better and possibly won't get better for some Tier 1s.”
Industry executives have emphasised that companies’ omnichannel nature means additional costs in retail activity end up affecting online business and vice versa. They point to the thousands of high-street closures after the earlier remote gaming tax rise as an example of that cross‑impact.
Regulatory and urban consequences
Prime Minister Andy Burnham, in office since August 2026, has shown disdain for betting shops and amusement arcades, grouping them with vape shops and calling them “antisocial”. Among measures announced on taking office was his intention to remove the “aim to permit” clause from UK gambling legislation; that provision obliged local councils to permit new betting shop openings unless they had strong reasons to refuse. Its removal will make it easier for local authorities to deny new gambling premises.
The combined effect of higher MGD, the burden on remote gaming, the planned rise for online sports betting in April 2027 and the removal of municipal protections alters the operating environment for firms with physical presence on British high streets.
Summary of key figures
MGD rises from 20% to 25% for machines with stake > £1 (announced 30-10-2026).
Remote gaming tax rose from 21% to 40% in April 2026.
Online sports betting tax will rise from 15% to 25% in April 2027.
EY, cited by the BGC: up to 9,000 jobs lost and 1,000 premises closures as a possible outcome.
For related coverage on regulatory matters and industry reaction, see our sections of [regulation](/regulation) and [news](/news).
Frequently Asked Questions
What specific tax change did the UK Government announce on 30 October 2026?
The Government announced that Machine Games Duty (MGD) will increase from 20% to 25% on gross gaming yield for gaming machines with stakes over £1; the announcement was made in the Autumn Budget published on 30 October 2026.
How does this rise fit with recent changes to gambling taxation?
The MGD rise follows an April 2026 increase in the remote gaming tax from 21% to 40% and precedes a planned rise in online sports betting tax from 15% to 25% in April 2027, adding to the sector’s overall tax burden.
What labour and premises impacts does the industry predict from the tax increase?
The Betting and Gaming Council, citing an EY study, warned the measures could lead to up to 9,000 job losses and as many as 1,000 betting‑shop closures across the UK.
What do operators and analysts say about effects on major groups?
Analysts and executives, including Alun Bowden and Per Widerström of evoke, say Tier 1 operators such as Entain, Flutter and Bet 365 face a difficult period with potential job cuts and further consolidation due to rising costs and tax pressure.
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About the author
Miguel Sandoval
Regulatory Affairs Correspondent
Miguel Sandoval tracks gambling legislation, licensing, and regulator enforcement — from Spain's DGOJ and the Latin American authorities to the UKGC, the MGA, and the state-by-state map in North America. The reports answer three questions precisely — what changed, where, and who it affects — with jurisdictions, dates, and penalties cited exactly as published. Operators and compliance officers read Miguel Sandoval to know which rulebook moved before their next meeting.
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