Potential rise in Machine Games Duty could threaten thousands of UK betting shops
The upcoming budget may increase Machine Games Duty, a move that industry analysts warn could force many high-street betting shops to close, cutting racing’s off-course income.
Ahead of Wednesday’s budget, finance minister John Healey is poised to increase the Machine Games Duty that applies to high-street gaming machines, a policy first floated by the Social Market Foundation in June. The think-tank recommended doubling the duty from 20% to 40% to reflect higher harm levels associated with machine gambling. Industry reaction, based on a Regulus Partners report, warns that such a hike could close up to 4,000 of the 5,500 UK betting shops over three years, stripping horse racing of roughly £92 million a year - about a third of its betting revenue.
The British Horseracing Authority’s Greg Swift says this would devastate prize money, levy funding and equine-welfare research. Rumours suggest Healey may opt for a smaller increase to 25%, which the gambling sector still claims would cause hundreds of shop closures and tens of millions in lost racing income. The article notes that while online gambling has already reduced shop numbers, the sector’s reliance on physical outlets makes it vulnerable to any duty rise.
Why it matters
A higher betting-shop tax could slash thousands of jobs and cut vital funding for British horse racing.
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