The chief executives of six UK gambling operators have asked Chancellor John Healey to rule out a rise in Machine Games Duty (MGD) at the 28 October Budget and to pause the General Betting Duty (GBD) increase due in April 2027, the Betting and Gaming Council (BGC) said on 14 October.
The letter is signed by the heads of Entain, Flutter UK & Ireland, bet365, Bally’s Corporation, Evoke and Betfred. They want no further duty increases until the effect of the increases set in the 2025 Budget has been fully assessed.
The Machine Games Duty warning
MGD is the main concern. The letter cites EY analysis, commissioned by the BGC, of a doubling of the duty on Category B machines, the gaming machines found in betting shops and casinos, from the 20% standard rate to 40%.
| Impact of 40% MGD | EY estimate |
|---|---|
| Betting shop closures | 690 to 1,470 |
| Casino closures | 28 to 34 |
| Job losses | 11,600 to 15,900 |
| Net loss to the Exchequer | Up to £124m |
Figures: EY analysis commissioned by the BGC, cited in the CEOs’ letter, October 2026.
The CEOs put horseracing’s loss at £40m or more, through lower levy and media-rights payments. Each betting shop pays racing £25,000 to £30,000 a year through those two channels, according to the Racing Post, which also reported a Regulus Partners estimate of up to 28,000 job losses and £92m lost to the sport.
Shop closures since the last Budget
According to the letter, more than 600 betting shops have closed since the 2025 Budget, and 10,250 online and retail jobs have been cut or put up for redundancy. The cases it names include closures at Betfred and William Hill, Paddy Power shops under review and 300 job cuts at bet365 in Stoke-on-Trent.
Betfred had already said it could shut 495 shops if MGD doubles. Gambling Commission data cited by the BGC shows the number of betting shops in Great Britain has fallen by about 38% since 2015.
The Treasury has disputed that link before: in August it rejected Betfred’s tax explanation for 132 shop closures.
The industry is already grappling with the near doubling of Remote Gaming Duty. The Chancellor must rule out further tax rises at this Budget, including on Machine Games Duty, and pause the planned increase in General Betting Duty. You cannot tax businesses that have closed, and the Government risks destroying jobs and investment without raising a penny more for the Treasury.
Grainne Hurst, Chief Executive, Betting and Gaming Council, in a statement
Duties already rising
At the 2025 Budget, then-Chancellor Rachel Reeves raised Remote Gaming Duty (RGD) from 21% to 40% from 1 April 2026, according to the HMRC policy paper on gambling duties. Rank Group braced for a £40m hit from that change alone.
The same package creates a 25% remote rate of GBD from 1 April 2027, up from 15%. Remote bets on UK horseracing are excluded and stay at 15%, and the new rate does not cover pool betting, spread betting or bets placed on self-service terminals. Bingo Duty was abolished from 1 April 2026. MGD was left unchanged.
Next steps
Healey presents his first Budget as Chancellor on 28 October 2026. Unless it changes the timetable, the 25% remote GBD rate takes effect on 1 April 2027.
Source: Betting and Gaming Council
