UK Chancellor John Healey is considering an increase in Machine Games Duty on slot machines ahead of the government’s Oct. 28 budget, as the Treasury seeks additional revenue amid tight public finances, according to a report by The Times.
The review follows proposals earlier this year from the Social Market Foundation think tank to double the tax on Category B machines from 20% to 40%. Such machines can have a maximum £2 ($2.71) stake every 2.5 seconds.
“Increases in gambling taxes are definitely on the table again,” a government source told The Times.
The source also suggested that adult gaming centres could be particularly exposed to higher machine taxes, while bingo halls and pubs could receive carve-outs if the government increases the duty.
“Andy hates adult gaming centres,” the source said. “But, like all politicians, he loves bingo halls and pubs. They would probably need carve-outs if they do go after machine games duty.”
The chancellor faces a tight budget on Oct. 28, with the government needing to raise billions of pounds through tax rises or spending cuts to fund cost-of-living measures and increased defence spending.
Former Chancellor Rachel Reeves also reportedly considered raising taxes on slot machines but ultimately opted to increase taxes on online gambling instead. An increased 40% rate for digital casinos took effect in April.
The industry has largely attributed betting-shop closures to increases in online gambling taxes, although higher energy costs and the rise in national insurance have also been highlighted as contributing factors.
A further increase in Machine Games Duty could put additional pressure on Britain’s retail gambling sector and accelerate betting-shop closures.
Adult Gaming Centres, known as slot parlours, have also faced regulatory pressure, including recently announced moves to scrap “aim-to-permit” licensing.
Betting shops are also facing a longer-term decline as consumers shift from land-based to online gambling, a trend accelerated by the COVID-19 pandemic.
Modelling by Regulus Partners has argued that tax increases on the scale proposed by the Social Market Foundation could result in the majority of betting shops and adult gaming centres closing nationwide, potentially limiting or eliminating the expected tax revenue increase.
The Betting and Gaming Council said it fundamentally opposed any increase in Machine Games Duty, warning that higher taxes could lead to further closures and job losses, weaken high streets and benefit illegal gambling.
A Treasury spokesperson said the government would set out its decisions at fiscal events rather than comment on rumours or proposals.
“The Chancellor is fully focused on his priorities, to boost business, help with the cost of living and support people in every postcode,” the spokesperson told The Times. “As has always been the case, the Chancellor will set out decisions at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
Original article: https://www.yogonet.com/international/news/2026/09/09/126321-uk-chancellor-reportedly-weighing-slot-machine-tax-increase-ahead-of-october-budget
