Chancellor announces machine gaming duty to rise to 25 per cent Chancellor John Healey announced he will increase gambling taxes to pay for a high street support package during his 2026 Budget, with machine gaming duty climbing to 25 per cent. While the increase is lower than the 40 per cent which was feared – and campaigned for in some quarters – it is still expected to have a serious impact on bookmakers and betting shops. That in turn will mean the loss of millions of pounds in levy and media rights income for British racing. Healey said: “To pay for this support for our high streets, I am raising taxes on gambling – by increasing Machine Games Duty from 20 per cent to 25 per cent for higher stakes machines, while protecting pubs and seaside arcades.” The implications of new measures, which will see tax on higher stake machines go from 20 to 25 per cent, could inadvertently affect bookmakers’ support for racing across the United Kingdom. Betting machines have become a fundamental operation for bookmakers but the hike in tax could result in betting shops becoming unprofitable, leading to closures due to the slimming profit margins and increasing costs. The Betting and Gaming Council said it was a “deeply damaging decision” from the government, one which makes the “illegal gambling market more attractive to customers”. A statement from chief executive Grainne Hurst read: “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. “The Chancellor has ignored repeated warnings about the consequences. At 25 per cent, EY projects almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk. These are real people and families facing the loss of their income and security, in places where alternative work can be hard to find. “Every betting shop or casino closure means lost livelihoods, more empty premises and another huge blow to our high streets. These venues will not simply be replaced, particularly in places already struggling to attract jobs and investment. “Higher taxes on the regulated industry also will make the illegal gambling market more attractive to customers, where operators pay no UK tax, contribute nothing to British sport and offer none of the safeguards required of licensed businesses. “The Chancellor has chosen a tax rise that will cost British jobs, close businesses and hollow out high streets, while handing an advantage to illegal operators. The Government cannot ignore the consequences of this decision.”
