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UK raises machine games duty despite warnings from betting sector

The UK government has increased machine games duty to twenty five percent, putting fresh pressure on betting operators.

Written by the BettingEdgeHub desk, 28 October 2026

The United Kingdom government has decided to increase the machine games duty despite strong warnings from the gambling sector. Chancellor John Healey confirmed the new rate will rise from twenty percent to twenty five percent. This decision follows recent online tax hikes and adds more financial pressure to operators who are already struggling with higher operating costs.

Industry warnings and job loss fears

Betting organizations and industry leaders warned the government that higher taxes would lead to shop closures and staff layoffs. Many betting shops and gaming venues across Great Britain have already been forced to scale down operations due to rising expenses and strict regulations. Industry groups argued that any further tax increases would only speed up this decline and hurt local high streets.

Pressure from parliament members

A group of members of parliament previously urged the chancellor to raise taxes on gaming machines even further. Led by politicians who support gambling reform, the group suggested a much higher rate. The final decision to set the increase at five percent means operators avoided the worst case scenario proposed by some critics, but the burden remains heavy.

Mixed reactions from analysts

Some critics felt the five percent increase was too small to make a meaningful difference, while other policy groups praised the move. Supporters of the tax hike argue that higher risk betting verticals should face appropriate taxation to reflect their social impact. Small businesses will receive a slight adjustment to their relief threshold, though adult gaming centres and vape shops are excluded from certain relief plans.