UK Raises Gambling-Machine Tax to 25% on Higher-Stakes Slots

The rise hits betting shops, casinos and adult gaming centres from April 2027, after the industry says more than 600 shops have already closed or announced closures since the last budget.

Francis Gable

28/10/26 · 2 minOctober 28, 2026 · 2 min read

Chancellor John Healey raised Britain's tax on higher-stakes gambling machines from 20% to 25% in his budget on Oct. 28, starting April 1, 2027.

The Treasury expects the rise, plus a change in who pays it, to bring in £135 million ($179 million) in its first year, according to multiple industry reports. The money pays for business rates relief on Britain's high streets.

It is the second budget in a row to raise gambling taxes. The Betting and Gaming Council (BGC), the industry's trade group, cites EY modeling that almost 9,000 jobs could go and almost 1,000 betting shops and casinos could close or be at serious risk.

Higher-Stakes Machines Move to the Top Rate

Machine Games Duty is a tax on what a venue keeps from its machines after paying out prizes. Under the government's budget tax document, any machine with a maximum stake above £1 ($1.33) or a top prize above £100 ($133) moves to the 25% rate.

That covers the Category B slots in betting shops, casinos, bingo halls and adult gaming centres. Low-stakes machines in pubs and seaside arcades keep their current rate, and Healey also cut adult gaming centres out of the new rates relief.

Bookmakers Count the Cost of Two Budgets

The rate came in below the 40% some campaigners sought, and shares in Ladbrokes owner Entain and casino group Rank rose, multiple outlets reported.

This is a deeply damaging decision and a blow to the thousands of workers, businesses and communities who depend on Britain's regulated betting and gaming industry.

That was Grainne Hurst, the BGC's chief executive. The group says more than 600 betting shops have closed or announced closures since the last budget, which raised online casino tax to 40% from April 2026.

Online sports betting duty rises to 25% in April 2027, and Flutter has already blamed those increases for up to 1,400 job cuts.

The government is consulting until Jan. 20, 2027, on making machine suppliers pay the duty on machines they own and run under profit-share deals, a change set for April 2028.

Treat gambling as entertainment you pay for. 18+, and if it stops feeling like entertainment, help exists at BeGambleAware and GamCare.