The UK government will increase Machine Games Duty from 20% to 25% for qualifying higher-stakes machine games from April 1, 2027. The measure was announced in the October 28 Budget, alongside a separate reform changing which businesses must account for the tax.
The official Budget document specifies that the higher rate will apply to machine games with stakes above £1 or prizes above £100. The scope should therefore be distinguished from an increase covering every gaming machine or every gambling product.
Chancellor John Healey presented the additional gambling revenue as part of the funding for business rates support for retail, hospitality and leisure properties. Adult gaming centers will be excluded from the business rates reliefs, while the government said its machine tax changes would protect pubs and seaside arcades.
The announcement follows earlier changes to online gambling taxation. Remote Gaming Duty increased to 40% in April 2026, while the previously announced increase in duty on most remote fixed-odds betting to 25% remains scheduled for April 2027. Those measures are separate from the new machine duty announcement.
A separate reform will transfer some tax obligations to machine suppliers
From April 1, 2028, suppliers will become liable for Machine Games Duty on machines they own and operate through profit-sharing arrangements. Under the current system, the business responsible for the premises generally accounts for the duty, including where another company owns the machines.
Premises operators will remain liable where they own the machines outright. They will also retain responsibility under fixed rental or lease arrangements where they control the takings. The government’s implementation consultation seeks evidence on mixed commercial arrangements, recordkeeping, compliance and transitional requirements.
Shares in Entain, evoke and Rank Group rose during October 28 trading following the Budget announcement, SBC News reported. Its published prices were intraday observations; the market response does not change the announced increase in operators’ machine tax liabilities.
The consultation on liability runs until January 20, 2027. It concerns implementation of the supplier-liability reform and does not invite submissions on duty rates, machine stake limits or wider gambling tax policy.
