London, October 29, 2026. The UK government confirmed an increase in Machine Games Duty (MGD) from 20% to 25%, effective April 1, 2027, applying to gaming machines with stakes exceeding £1 or prizes exceeding £100. Certain tax obligations will also be transferred to machine suppliers from April 2028.
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The reform was announced on October 28 by Chancellor of the Exchequer John Healey, during the 2026 Budget under Andy Burnham's government. It will be incorporated into the Finance Bill 2026–27, amending the Finance Act 2012. According to HM Revenue & Customs (HMRC), the changes will affect approximately 5,100 operators and 12,400 establishments, including casinos, gaming arcades, bingo halls, and betting shops.
Andy Burnham
Lower-stake and lower-prize machines will retain the existing 5% and 20% tax rates, while machines exceeding either of the new thresholds will be taxed at 25% on their net gaming revenue. From April 1, 2028, suppliers owning machines operated under profit-sharing agreements will become responsible for declaring and paying MGD. Establishments will retain that responsibility when they own the machines or operate under fixed-rent agreements.
Great Britain strengths rules for gaming machines
Grainne Hurst
HM Treasury projects an additional £135 million in 2027–28 and £150 million in 2028–29, based on estimates certified by the Office for Budget Responsibility (OBR). The measure drew criticism from the Betting and Gaming Council (BGC), led by Grainne Hurst, which cited estimates suggesting approximately 9,000 jobs and 1,000 establishments could be affected.
Rank Group, operator of Grosvenor Casinos and Mecca Bingo, led by Richard Harris, estimated an additional annual cost of £9 million, including approximately £2 million during its financial year ending in June 2027. HMRC, headed by John-Paul Marks, administers the tax, while the Gambling Commission, chaired by Ruth Evans, oversees licensed gambling activities.
