UK Gambling Industry Condemns Healey’s Rise in Machine Games Duty to 25%
Summary
Chancellor John Healey increased Machine Games Duty from 20% to 25%. The Office for Budget Responsibility expects betting and gaming receipts to rise 31% to £5bn in 2026/27, growing 3.4% annually to £6bn by 2031/32, with the new rate generating £100m annually from 2027/28. Entain, operator of Ladbrokes and Coral, estimates a £25m immediate impact on its UK and Ireland business; CEO Stella David criticized previous tax increases for detrimental effects, but expects full mitigation by end of 2028 and left FY26 guidance and £500m adjusted cash flow target for 2028 unchanged. The Betting and Gaming Council called the decision “deeply damaging,” warning nearly 9,000 jobs and around 1,000 betting shops and casinos are at risk, particularly in the North of England and Scotland, and that closures will benefit illegal operators. Brant Dunshea, CEO of the British Horseracing Authority, said the rise “could still prove devastating” for racing, impacting prize money, racecourse viability, jobs, and horse welfare projects. The Bingo Association forecast 77 clubs becoming loss-making, with hardest hits in the Midlands and North, warning of worsened social isolation. The article concludes that layered tax increases since 2025 heighten pressure on retail viability, with immediate risk of accelerated closures and potential erosion of projected receipts if mitigation is slower than expected; operators must secure concrete government relief before further venue losses.
(Source:Sccg Management)