Budget Raises Machine Games Duty to 25%: What It Means

The Budget on 28 October brought another tax rise for the UK gambling industry. Machine Games Duty on the most common type of gaming machine will rise from 20% to 25%. The change comes only months after a sharp increase in the tax on online casino games, and the industry warns that thousands of jobs and venues are at risk.

Key points

• Machine Games Duty on Category B machines rises from 20% to 25% from 1 April 2027.
• The Office for Budget Responsibility expects the change to raise around £100 million a year.
• The Betting and Gaming Council called the move “deeply damaging”.
• Online casino games are already taxed at 40% under Remote Gaming Duty since April 2026.

What is Machine Games Duty?

Machine Games Duty is a tax paid by operators on the profits from gaming machines. It does not apply to online slots, but to physical machines in places such as land-based casinos, betting shops, bingo halls and adult gaming centres. Category B machines are the most common type in these venues. They include the B2 and B3 machines you find in betting shops and the slot machines in casinos.

From 1 April 2027, operators will pay 25% instead of 20% of their machine profits in duty. Players do not pay the tax directly, but it affects how much operators earn from each machine.

How the industry reacted

The Betting and Gaming Council, which represents a large part of the regulated industry, reacted strongly. Chief executive Grainne Hurst described the rise as “deeply damaging” for high street venues. Research by EY for the industry estimated that the combined tax changes could put almost 9,000 jobs and around 1,000 venues at risk.

Individual operators also spelled out the cost. Entain, the owner of Ladbrokes and Coral, expects an impact of around £25 million. Even so, shares in Entain rose by 5.4% and shares in Rank Group, which runs Grosvenor casinos and Mecca bingo, rose by 8.1% after the Budget.

Part of a bigger tax shift

The duty increase is the latest step in a wider change to how gambling is taxed in the UK:

Taken together, these changes mean the government is taking a much larger share of gambling profits than before, both online and on the high street.

What this means for players

For players at land-based venues, the impact may be felt in fewer venues and fewer machines, especially on the high street. Operators may also review the mix of games and the payouts they offer, within the limits of the rules.

For online casino players, Machine Games Duty does not apply directly. But the higher online tax that came into force in April already has an effect. Operators have less room in their budgets, and that can affect the size of bonuses and promotions. That is one more reason to compare offers before you sign up. Our overview of the best welcome bonuses shows which casinos still offer good value, and since January 2026 bonus wagering in the UK is capped at 10x.

It also pays to choose a licensed operator with a solid track record. A casino that is under financial pressure may cut back on service, while a well-run operator should continue to pay out quickly and treat customers fairly. Compare the top UK online casinos to find a site that suits you.

What happens next

The higher rate starts on 1 April 2027, which gives operators time to adjust. The industry is expected to keep lobbying against the increase, while campaigners for stricter gambling rules have long argued for higher gambling taxes. We will follow the developments on our casino news page.

Play responsibly. Set a budget before you start and never gamble with money you cannot afford to lose. For free and confidential support, visit BeGambleAware.org. 18+ only.