Gibraltar warns over proposed UK rise in Machine Games Duty
Proposal from 90 Labour MPs would double the machine duty to 40% in the autumn budget
Key Takeaways
- A group of 90 Labour MPs has proposed raising Machine Games Duty in the UK from 20% to 40% in the autumn budget.
- GBC reported the proposal is awaiting decision in the UK budgetary process.
- Nigel Feetham, Gibraltar’s Minister for Commerce and Industry, warned of economic risks for Gibraltar and major operators.
- The increase could put at risk about 1,500 betting shops and 34 casinos in the United Kingdom.
- The rate for virtual casinos already rose from 21% to 40% on 1 April 2026.
Gibraltar has warned about a UK proposal to raise the Machine Games Duty on gaming machines from 20% to 40%. The initiative was put forward by a group of 90 Labour MPs and is pending a decision in the UK autumn budget, GBC reported.
Risk to operators active in both jurisdictions
Nigel Feetham, Minister for Commerce and Industry of Gibraltar, warned of risks to the Rock’s economy and its links with major international gambling groups. If approved, the increase could endanger around 1,500 betting shops and 34 casinos in the United Kingdom.
Recent tax context
The proposed change for machines would add to a tax change already approved for online gambling: the rate for virtual casinos rose from 21% to 40% on 1 April 2026. The machines proposal remains subject to the UK budget process.
Feetham argued that Gibraltar needs to diversify its economy to reduce dependence on fiscal decisions taken in London. The increase would not automatically affect all activity conducted from Gibraltar, but it could squeeze margins and influence investment decisions by companies operating in both markets.
Article by Miguel Sandoval, Regulatory Affairs Correspondent.
Frequently Asked Questions
Who proposed the increase in the UK machine duty?
A group of 90 Labour MPs proposed raising the Machine Games Duty from 20% to 40% in the UK autumn budget, according to GBC.
What economic impact does Gibraltar expect if the rise is approved?
Gibraltar warns the rise could endanger around 1,500 betting shops and 34 casinos in the UK and could reduce operators’ margins and affect investment by firms active in both markets.
How does this proposal relate to recent tax changes?
The machines proposal would add to a previously approved increase for online gambling: the rate for virtual casinos rose from 21% to 40% on 1 April 2026.
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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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