UK Raises Machine Games Duty to 25% and Targets Suppliers in 2028

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Altay Celikkaya

Content Manager

Updated: 30/10/26

Reading Time: 2 minutes

The UK government has confirmed plans to increase Machine Games Duty (MGD) from 20% to 25% for higher-stakes gaming machines from 1 April 2027, adding further tax pressure on betting shops, casinos and adult gaming centres.

Announced in the 28 October Budget, the measure targets machines with stakes exceeding £1 or maximum prizes above £100. The government has also outlined a separate reform that would transfer certain tax liabilities from venue operators to machine suppliers in April 2028.

UK government raises Machine Games Duty to 25% from April 2027, with Westminster in the background.

Regulation & Compliance

Key Takeaways From the UK Machine Games Duty Changes

Machine Games Duty will increase from 20% to 25% for affected machines on 1 April 2027.
Machines with stakes over £1 or maximum prizes exceeding £100 will fall into the higher tax category.
Existing duty treatment will remain unchanged for lower-stake machines.
Machine suppliers will become responsible for MGD under certain profit-sharing arrangements from April 2028.
HMRC’s consultation on the supplier liability reform closes on 20 January 2027.
Industry representatives warn that higher taxation could put jobs and retail gambling venues at risk.

Higher Gaming Machine Tax Takes Effect in April 2027

According to the UK government’s official Budget 2026, the higher rate will apply to eligible machine games currently taxed at 20%.

Machine Games Duty is calculated on net takings, not total wagers.

The government argues that higher-stake and higher-prize machines carry greater gambling-related risks. It intends to retain existing rates for lower-stake machines commonly found in pubs and seaside arcades.

The announcement follows calls from 90 Labour MPs for higher gaming machine taxation ahead of the Budget.

Machine Suppliers Face New Tax Responsibilities

A separate reform will change who pays Machine Games Duty under certain commercial arrangements.

From 1 April 2028, suppliers will become liable for MGD on supplier-owned machines operated through profit-sharing agreements.

Venue operators will remain responsible when they own machines outright or operate them under fixed rental or lease agreements while controlling the takings.

HMRC has launched an official consultation on machine supplier tax liability, inviting industry feedback until 20 January 2027.

The consultation focuses on implementation, record-keeping requirements and potential business impacts.

Industry Warns of Job Losses and Closures

The Betting and Gaming Council (BGC) has criticised the increase, citing EY modelling suggesting that nearly 9,000 jobs and 1,000 betting shops and casinos could be at risk.

BGC chief executive Grainne Hurst said:

The Chancellor has ignored repeated warnings about the consequences.

The warning follows the BGC’s Back Our Betting Shops campaign, which highlighted growing pressure on high-street gambling businesses.

Major operators are already reviewing costs, with Flutter planning up to 1,400 job cuts across its UK and Ireland operations.

For operators and suppliers, the two reforms create separate deadlines for reviewing machine profitability, commercial contracts and tax compliance.

The duty increase is planned for April 2027, while detailed implementation of the supplier liability reform remains subject to consultation.