Chancellor announces machine gaming duty to rise to 25 per cent

Chancellor John Healey announced he will increase gambling taxes to pay for a high street support package during his 2026 Budget, with machine gaming duty climbing to 25 per cent.

While the increase is lower than the 40 per cent which was feared – and campaigned for in some quarters – it is still expected to have a serious impact on bookmakers and betting shops. That in turn will mean the loss of millions of pounds in levy and media rights income for British racing.

Healey said: “To pay for this support for our high streets, I am raising taxes on gambling – by increasing Machine Games Duty from 20 per cent to 25 per cent for higher stakes machines, while protecting pubs and seaside arcades.”

The implications of new measures, which will see tax on higher stake machines go from 20 to 25 per cent, could inadvertently affect bookmakers’ support for racing across the United Kingdom.

Betting machines have become a fundamental operation for bookmakers but the hike in tax could result in betting shops becoming unprofitable, leading to closures due to the slimming profit margins and increasing costs.

Bookmakers have been contacted for comment.