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Rules and licensingLabour politicians push for big tax hike on high street betting machines
Nearly ninety Labour politicians want to raise the tax on popular betting terminals to forty percent before the government budget.
Written by the BettingEdgeHub desk, 21 October 2026
A group of nearly ninety Labour politicians are pushing the government to raise the machine games duty on Category B gambling terminals to forty percent. Alex Ballinger is leading this push and wants the Chancellor to follow advice from the Social Market Foundation. The current tax rate sits between five and twenty five percent depending on the specific machine type. Proponents of the change argue that these terminals cause harm in poorer neighborhoods.
Tax revenue estimates
Experts suggest that raising the tax could bring in between two hundred seventy five and four hundred fifty eight million pounds in extra revenue each year. Category B machines allow players to win up to five hundred pounds. You can find these terminals in nearly every high street betting shop, bingo hall, and adult gaming center across the UK. Politicians pushing for the change also want to remove tax exemptions for machines operating inside pubs.
Industry warnings
Major trade bodies including the Betting and Gaming Council, Bacta, and the Bingo Association warn that higher taxes will destroy jobs. Several gambling companies already plan to close shops and cut staff numbers across the country. Betfred founder Fred Done stated that high street betting shops could go completely out of business by the year twenty thirty if the tax goes up. Rank Group added that one third of its venues would likely have to close down permanently.
More than one thousand representatives from the greyhound racing industry also signed a letter opposing the proposed tax increase. The Betting and Gaming Council continues to run campaigns urging the government to protect high street betting shops from extra financial pressure. The wagering requirement for this tax proposal was not stated.
Punters might see more high street betting shops close down if the government decides to raise taxes on gaming terminals.