Industry Groups Issue Warnings on Proposed Machine Games Duty Rise Ahead of October Budget

Xander Vogel · Oct 13, 2026

Industry Groups Issue Warnings on Proposed Machine Games Duty Rise Ahead of October Budget

UK gambling industry executives discussing tax policy impacts in a professional setting

Executives and industry bodies have directed attention toward the October 28 Budget, where proposals to increase Machine Games Duty on slots and gaming machines to 40 percent have drawn formal objections from multiple quarters, with cited figures pointing to potential losses of up to 16,000 jobs alongside closures affecting nearly 1,500 betting shops and 34 casinos, while also projecting a net reduction in overall Treasury receipts.

The warnings arrive against a backdrop of earlier tax adjustments, including the scheduled rise in Remote Gaming Duty to 40 percent from April 2026, and they form part of the Betting and Gaming Council’s ongoing “Save Our Bets” campaign that seeks to highlight cumulative fiscal pressures on land-based operations.

Details of the Industry Position

Representatives from betting shops, casinos and machine suppliers have compiled modelling that shows the combined effect of successive duty increases could reduce operator viability in high-street locations, with the data indicating that marginal sites might cease trading entirely once the higher rate takes effect; those same projections estimate direct employment reductions reaching 16,000 positions across the supply chain and ancillary services.

Separate analysis referenced by the same groups forecasts the closure of approximately 1,500 betting shops and 34 casinos, a scale of contraction that would remove significant volumes of Machine Games Duty itself and therefore produce a lower net contribution to public finances than the current regime.

Context of Prior Tax Changes

Operators note that the Remote Gaming Duty adjustment scheduled for April 2026 already adds to the total tax burden carried by companies that maintain both online and physical estates, creating a situation in which further increases on machine-specific duty would compound existing cost pressures rather than operate in isolation.

Campaign materials circulated under the “Save Our Bets” banner present these successive rises as a sequence that began with earlier duty reforms and now extends to the physical gaming sector, with the October 28 Budget viewed as the next decision point at which the trajectory could accelerate.

High street betting shop interior showing gaming machines and staff

Revenue Implications Highlighted in Submissions

Industry submissions to the Treasury have included estimates showing that reduced trading volumes and site closures would shrink the overall tax base, producing a net fiscal shortfall once lost employment taxes, business rates and secondary spending are taken into account; the modelling distinguishes between headline duty rates and the effective yield once behavioural responses are incorporated.

Executives have pointed to examples from other jurisdictions where sharp duty hikes on land-based machines led to accelerated migration of play to unregulated or offshore channels, a pattern they argue would repeat in the UK if the proposed 40 percent rate is adopted without corresponding measures to protect the regulated market.

Campaign Activities and Stakeholder Engagement

The Betting and Gaming Council has coordinated statements from multiple chief executives who operate large machine estates, each outlining the capital investment cycles that would be disrupted by the higher duty and the consequent effect on maintenance, upgrades and new installations across remaining sites.

Meetings with officials and briefings supplied to parliamentarians have formed part of the same coordinated effort, with the October 28 date identified as the window in which the final rate decision will be taken and therefore the point at which the cited employment and closure figures could materialise.

Conclusion

Industry statements ahead of the October 28 Budget therefore centre on the interaction between the proposed Machine Games Duty increase, the earlier Remote Gaming Duty change due in April 2026, and the aggregate impact on employment, premises numbers and Treasury receipts, with the “Save Our Bets” campaign serving as the principal vehicle for communicating those figures to policymakers and the wider public.