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UK Chancellor John Healey reportedly plans to limit machine games duty increase to twenty five percent

Land based betting operators face a smaller tax rise than feared in the upcoming Autumn Budget.

Written by the BettingEdgeHub desk, 21 October 2026

Chancellor John Healey is expected to present an Autumn Budget that raises Machine Games Duty by five percent. This adjustment would bring the rate to twenty five percent from the current twenty percent level. Industry stakeholders can breathe a sigh of relief because recent reports suggested a much higher jump. A think tank report earlier in the year previously called for the duty to double to forty percent.

Pressure from political figures

Several prominent political voices pushed for aggressive tax increases on the gambling sector. A group of ninety members of parliament co signed a letter supporting the forty percent rate. Former Prime Minister Gordon Brown also advocated for higher taxes to fund public services. The gambling industry has learned to fear these interventions because Brown previously predicted other major tax hikes.

Impact on high street betting

The threat of severe tax hikes sparked a massive lobbying campaign from operators across the country. High street betting shops, bingo halls, and adult gaming centres rely heavily on these gaming machines. Betfred founder Fred Done previously warned that a forty percent tax rate would kill high street betting completely. Operators are already struggling with job losses and cost cutting measures following previous tax changes.

Consequences for racing

Horse racing and greyhound racing rely heavily on funding generated by the betting industry. Bookmakers pay a levy based on their gross profits to support the sport. Any closures of betting shops directly reduce the money available for racing. Sponsorship deals across the sport have already dropped significantly over the past year.

What comes next

The official budget announcement arrives on October twenty eighth to confirm the final figures. Operators hope this reported cap will prevent further devastation on the high street. The gambling sector continues to monitor government plans very closely as the announcement date approaches.