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Chancellor John Healey limits machine games duty rise to 25 percent

UK operators avoid a feared 40 percent tax hike as Chancellor John Healey raises machine games duty to 25 percent.

Written by the BettingEdgeHub desk, 28 October 2026

UK Chancellor John Healey announced a rise in machine games duty from 20 percent to 25 percent during his recent Budget statement. The adjustment targets higher stakes gaming machines to help fund business rates support for high street shops. Gambling operators spent months preparing for a much harsher tax increase after extensive lobbying from various political figures.

A bullet dodged for operators

A prominent think tank and ninety Labour MPs previously pushed for a steep 40 percent tax rate on these machines. Major betting company bosses strongly warned the government that a massive tax hike would destroy thousands of jobs and force many betting shops to close permanently. The final five percent increase comes as a significant relief compared to the worst case scenarios that executives feared.

How the new tax rules work

The updated duty rate applies specifically to machines with stakes over one pound or prizes exceeding one hundred pounds starting in April 2027. Traditional lower stake machines found in seaside arcades and local pubs remain protected at their current tax rates. Suppliers will also face new liabilities on shared profit arrangements starting a year later following a consultation process.

Mixed reactions from the industry

Industry groups expressed relief about avoiding the punitive 40 percent levy while still acknowledging the added financial pressure from higher taxes. Economists supporting the tax increase argued that higher rates appropriately target products associated with greater betting harm. Operators must now plan their venue investments carefully around the new tax schedule coming into effect over the next few years.