- Developing
UK Budget Preview: Gambling Duties and the Machine Games Duty Debate Before 28 October
Before the 28 October 2026 UK Budget, operators are asking for restraint on gambling taxes while some Labour MPs and a think tank propose higher Machine Games Duty on Category B machines. Existing rates and attributed claims are separated.
The UK Budget is scheduled for Wednesday 28 October 2026. Gambling taxation has become a subject of public lobbying ahead of the statement, with operators asking the government to reconsider planned duty increases and some Labour MPs and researchers calling for higher Machine Games Duty (MGD) on certain gaming machines. As of 26 October, the sources cited below do not establish what the Chancellor will announce on gambling taxes.
What Is Already Set
HMRC's published policy paper says Remote Gaming Duty increased from 21% to 40% from 1 April 2026. A new 25% rate for remote betting within General Betting Duty is scheduled from 1 April 2027; remote bets on UK horse racing remain at 15%, and specified other categories are excluded from the new rate. Bingo Duty was abolished from 1 April 2026.
HMRC lists Machine Games Duty at 5% for Type 1 machines, 20% for Type 2 machines and 25% for Type 3 machines. These are the existing published rates; they are distinct from proposals to raise MGD on Category B machines.
What the Industry Is Asking
AJ Bell, reporting on a letter obtained by Sky News, said senior executives from major operators asked Chancellor John Healey to pause the planned 25% remote betting rate until the impact of earlier tax changes could be assessed. The report also attributes to a BGC-commissioned EY analysis estimates that a 40% MGD rate could lead to 690–1,470 betting-shop closures, 28–34 casino closures, 11,600–15,900 job losses and a net Exchequer loss of up to £124 million. These are attributed estimates, not established outcomes; the underlying EY analysis has not been independently assessed for this article.
What Labour MPs and Researchers Are Proposing
SBC News reported on 16 October that 90 Labour MPs, led by Alex Ballinger, called for MGD on Category B machines to rise to 40%. This is a proposal, not government policy.
The Social Market Foundation published a report on 30 June 2026 recommending that MGD on Category B machines be doubled to 40%. It estimated that the change could raise an additional £275 million to £458 million, depending on modelling assumptions. This is the think tank's estimate, not an official Treasury forecast.
Industry Response and an Important Distinction
SBC News reported on 19 October that Betting and Gaming Council chief executive Grainne Hurst criticised the MPs' proposal. The existing MGD bands—5%, 20% and 25%—do not currently include a 40% rate. The proposal for Category B machines should not be confused with the already legislated 40% Remote Gaming Duty rate, which applies to remote gaming profits.
Confirmed and Unconfirmed
- Confirmed by official sources: the Budget date, the published Remote Gaming Duty and remote betting changes, the abolition of Bingo Duty, and current MGD rates.
- Attributed to reporting or research: the operators' letter, the Labour MPs' letter, the BGC response, the EY estimates and the SMF revenue estimate.
- Not known before the Budget: whether the government will change MGD, alter the planned remote betting rate, or announce any other gambling-tax measures.
Timeline
- 26 November 2025 — HMRC publishes its policy paper on gambling-duty changes announced at Budget 2025.
- 1 April 2026 — Remote Gaming Duty rises to 40% and Bingo Duty is abolished.
- 30 June 2026 — The Social Market Foundation publishes its report on MGD for Category B machines.
- 31 July 2026 — HM Treasury confirms the Budget date as 28 October 2026.
- 14 October 2026 — AJ Bell reports the industry executives' request for restraint on sector taxes.
- 16 October 2026 — SBC News reports the letter from 90 Labour MPs calling for higher MGD on Category B machines.
- 19 October 2026 — SBC News reports the BGC chief executive's response.
- 28 October 2026 — UK Budget scheduled.
Bottom Line
The main gambling-duty changes already announced are documented by HMRC. The proposed 40% MGD rate for Category B machines is a separate proposal backed by some MPs and the Social Market Foundation, while industry representatives have warned of possible economic consequences. The Budget announcement will determine whether the government changes its existing plans.
| Fact box | |
|---|---|
| Budget date | 28 October 2026 |
| Remote Gaming Duty | 40% from 1 April 2026 |
| Remote betting rate | 25% from 1 April 2027, with stated exclusions |
| Current MGD rates | 5% / 20% / 25% |
| SMF estimate for proposed Category B MGD change | £275m–£458m additional revenue, as estimated by SMF |
| Editorial status | Unpublished — pending review |
