Chancellor John Healey is reportedly exploring an increase to machine games duty ahead of his first Budget in October, in a move the Betting and Gaming Council (BGC) has slammed.
As per The Times, officials in the Treasury are modelling how much money could potentially be raised from proposed hikes on machines games duty.
Machines games duty is currently set at 20% for Category B machines and for the vast majority of land-based gaming machines.
There is a lower rate of 5% applicable to gaming machines that cost £0.20 or less to play and a higher rate of 25% for those that cost £5 or more to play.
The Social Market Foundation has proposed upping machine games duty on Category B machines from 20% to 40%.
The think tank said the duty hike could generate up to £458m in annual tax revenue for Treasury coffers.
However, Regulus Partners has forecast up to 4,000 betting shops could close if the rate doubled.
The boutique analyst firm added that around 25,000 jobs would be lost as operators slashed their respective retail footprints.
Betting shops currently generate around £1.2bn a year from the more than 22,000 Category B machines, or fixed-odds betting terminals as they are also known, generating around £240m in tax.
Operators across the UK have already curtailed their retail estates, citing the remote gaming duty hike to 40% from 21% on 1 April as the cause.
Flutter said up to 100 Paddy Power shops could be closed in addition to the 57 it announced last October would shutter across the UK and Ireland.
Betfred will close 132 shops and William Hill parent evoke said around 270 of its shops had already been closed.
The tax hike would also impact Adult Gaming Centres, which alongside betting shops are also in the sightlines of Prime Minister Andy Burnham as he looks to revoke the ‘aim to permit’ rule.
The Times reported one government source had stated that “increases in gambling taxes are definitely on the table again”.
The same source added: “Andy [Burnham] hates Adult Gaming Centres. But, like all politicians, he loves bingo halls and pubs. They would probably need carveouts if they do go after machine games duty.”
Healey could follow his predecessor Rachel Reeves in hoiking up gambling duties.
Alongside remote gaming duty hitting 40%, Reeves set the wheels in motion for general betting duty to increase from 15% to 25% next April.
In Healey’s first major speech as chancellor delivered on Monday, 7 September, the former defence minister said he wouldn’t be drawn on Budget speculation.
Healey remarked: “On tax specifics, I’m the chancellor less than two months out from the Budget. I’m not going to speculate on questions of tax.”
London-listed Entain’s stock is down 1.5% in trading this morning, while Rank Group is also down 1.5%. Evoke is up marginally.
A BGC spokesperson said: “We fundamentally oppose any increase in machine games duty.
“It would put further pressure on betting shops, casinos and other venues, cost jobs and investment, weaken high streets and benefit the growing illegal gambling market.
“By the end of 2026, more than 600 betting shops will have closed and 5,000 jobs will have been lost since the last year’s Budget following increases in remote gaming duty.
“Doubling tax on a land-based product would lead to more closures, further job losses and damage to the wider ecosystem that supports British horseracing.”
A Treasury spokesman noted: “The chancellor is fully focused on his priorities, to boost business, help with the cost of living and support people in every postcode.
“As has always been the case, the chancellor will set out decisions at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
The Budget is due to delivered on 28 October.
The post Report: Chancellor considering machine games duty hike in upcoming Autumn Budget first appeared on EGR Intel.
The Times reports John Healey and the Treasury exploring receipt-raising move, as Betting and Gaming Council says duty hike would lead to more job losses and shop closures
The post Report: Chancellor considering machine games duty hike in upcoming Autumn Budget first appeared on EGR Intel.