Ninety Labour MPs have called on UK Chancellor John Healey to raise the Machine Games Duty (MGD) rate for Category B gaming machines in the upcoming Autumn Budget. The proposal, outlined in a letter published on 16 October by Labour MP Alex Ballinger, targets higher-stakes machines operating in betting shops, casinos and adult gaming centres. Unlike previous industry-led discussions, lawmakers are proposing a targeted tax change.
90 Labour MPs have called for a higher duty rate on Category B gaming machines.
The letter does not specify a new rate but references economic modelling based on 40%.
Lower-category gaming machines would remain outside the proposed increase.
The government has not announced any changes ahead of the 28 October Budget.
In his 16 October statement, Ballinger said:
It’s time to raise taxes on harmful gambling machines.
The lawmakers argue that current tax arrangements do not adequately reflect the potential harms of higher-stakes machines. Their letter highlights Category B3 machines, which permit maximum stakes of £2 and prizes of £500.
HM Revenue & Customs says these machines currently fall under the standard 20% MGD rate.
The proposal references Social Market Foundation modelling suggesting that a 40% rate could generate between £275 million and £458 million annually. However, lawmakers have not formally requested that specific rate. The MPs also raise concerns about the concentration of adult gaming centres in economically disadvantaged communities.
The Betting and Gaming Council responded on 17 October, warning that further taxation could threaten employment and the viability of retail gambling venues. Its position follows the previously reported Back Our Betting Shops campaign, which highlighted the sector’s financial pressures.
Meanwhile, recent research into casinos’ contribution to high-street businesses has drawn further attention to gambling venues’ wider economic role.
The Chancellor has not confirmed whether Machine Games Duty will change in the 28 October Budget. For operators and suppliers, the outcome could affect machine profitability, investment planning and venue economics.
The discussion also comes ahead of new technical requirements for Category B gaming machines, with major changes scheduled for June 2027. Until the government makes a formal Budget announcement, the proposed tax increase remains a parliamentary request rather than government policy.
