Nearly 90 Labour MPs urge hike of Machine Games Duty to 40% in autumn Budget
MPs ask Chancellor to raise Category B MGD to 40% ahead of 19 Oct 2026 Budget
Key Takeaways
- About 90 Labour MPs have written to Chancellor John Healey asking to raise Machine Games Duty on Category B machines to 40%.
- The Social Market Foundation estimates the proposed 40% rate could generate between £275m and £458m a year.
- The current MGD tiers for Category B are 5% up to 20p, 20% up to £5 and 25% above £5; the proposal would set a 40% rate for Category B.
- The campaign is led by MP Alex Ballinger and has public support from former prime minister Gordon Brown.
- Industry bodies including The Bingo Association, Bacta and the Betting and Gaming Council warn of venue closures and job losses; Betfred’s founder and Rank Group have issued public warnings.
With just over a week until John Healey delivers the United Kingdom autumn Budget, around 90 Labour MPs have asked the Chancellor to raise the Machine Games Duty (MGD) on Category B machines to 40%. The initiative, led by MP Alex Ballinger, cites a Social Market Foundation (SMF) report that estimates additional annual receipts of between £275m and £458m if the increase is applied.
What the MPs propose
Alex Ballinger leads the letter to Chancellor John Healey asking that the rate applied to Category B machines be set at 40% under the SMF proposal published in June. Ballinger also argues that B-type machines, which can pay up to £500, are overrepresented in disadvantaged areas: “47 per cent are located in the most deprived fifth of the country, while the most deprived local authorities have more than six times as many per head as the least deprived,” the letter states.
Ballinger also cites evidence collected by the Government in its review of Category B3 machines, including a point from the Gambling Commission that higher-stake, higher-prize machine players are among the groups most likely to contact gambling support services. The letter adds that people with gambling problems play these machines more frequently and that players with problems spend relatively more time and money on them.
Ballinger proposes that pub machines (Category C) be excluded from the increase and that bingo games remain exempt from the duty. In his words: “This targeted Labour reform would protect communities from harm, require fair contributions from the broadest shoulders, and back high streets creating opportunity and retaining wealth. Pubs would pay no more, bingo games would stay duty-free and lower-category machines would remain protected.”
How the current system works and the alternative circulating
Today, MGD on Category B machines follows a tiered regime: 5% on stakes up to 20p, 20% on stakes up to £5, and 25% on stakes above £5. The report and the parliamentary campaign call for setting a flat rate of 40% for Category B.
Parallel reports have described a scenario in which the Government would double current rates: the low rate would rise from 5% to 10%, the standard rate from 20% to 40% and the high rate from 25% to 50%. Proponents say the rate for Category C machines would remain unchanged.
Industry reaction and risk to venues
Sector representatives warn of significant risks to bricks-and-mortar venues. Nicole Garrett, chief executive of The Bingo Association, has warned that an MGD increase could jeopardise bingo halls and that, while bingo games would be exempt, operators rely on machine revenues.
Bodies such as Bacta (the amusement and gaming machine trade association) and the Betting and Gaming Council have lobbied against the increase. The BGC is running a public campaign called Back Our Betting Shops. Founders and operators have set out stark scenarios: Fred Done, founder of Betfred, said doubling the MGD would lead to the disappearance of high-street betting shops by 2030. Rank Group warned it could be forced to close a third of its venues. More than 1,000 members of the greyhound racing sector have signed a letter opposing potential increases.
Political context and timetable
The request from around 90 MPs follows last year’s tax rises on Remote Gaming Duty and General Betting Duty. The parliamentary letter has public backing from former prime minister Gordon Brown and arrives with the Budget a little over a week before John Healey is due to present it on 19 October 2026, according to the parliamentary calendar cited by the campaigners.
The debate over MGD combines revenue arguments—the SMF estimates between £275m and £458m of additional annual receipts—and community-protection arguments from proponents, against industry claims on commercial viability and the risk of closures and job losses.
“47 per cent are located in the most deprived fifth of the country, while the most deprived local authorities have more than six times as many per head as the least deprived,” Alex Ballinger writes in the letter to the Chancellor.
“This targeted Labour reform would protect communities from harm, require fair contributions from the broadest shoulders, and back high streets creating opportunity and retaining wealth. Pubs would pay no more, bingo games would stay duty-free and lower-category machines would remain protected.”
Whether the proposal and the sector response force MGD on Category B into the Budget measures will be decided in the coming days; for tracking regulatory change and market reaction this discussion will be published in our [regulation](/regulation) section and in our [news](/news) roundup.
Frequently Asked Questions
Who is asking for the MGD increase and to what rate?
Around 90 Labour MPs, led by MP Alex Ballinger, are asking Chancellor John Healey to raise the Machine Games Duty on Category B machines to 40%; the campaign also has public backing from former prime minister Gordon Brown.
How much revenue could the proposed MGD hike raise?
The Social Market Foundation estimates that increasing Category B MGD to 40% could raise between £275m and £458m in additional annual receipts, according to the letter sent to the Chancellor.
How are Category B machines taxed now and what changes are proposed?
Currently Category B machines pay MGD at 5% on stakes up to 20p, 20% on stakes up to £5 and 25% on stakes above £5. The main proposal is to set a 40% rate for Category B; alternative reports have discussed doubling current tiers to 10%/40%/50%.
What is the industry’s response to the proposed increase?
Industry groups including The Bingo Association, Bacta and the Betting and Gaming Council oppose the increase, warning it would threaten the viability of physical venues. Executives such as Fred Done of Betfred and Rank Group have publicly warned of high-street closures and possible large-scale venue shutdowns.
Tags
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.
More from Miguel Sandoval
