Rumours of an increase in Machine Games Duty (MGD) have left many in the UK gambling sector worried about the future of their operations.

Giants like Entain, Betfred and Flutter have all announced that high-street shop closures are likely should the Chancellor of the Exchequer John Healey go ahead with the proposed rise.

Machine Games Duty, a tax on the net takings of certain cash-prize gaming machines like slots, fruit machines and quiz machines, is rumoured to be being doubled by the Chancellor in the upcoming Autumn Budget. 

Sitting down with Charlie Horner, SBC News Editor Ted Orme-Claye and SBC Media Director Martyn Elliott discussed the latest UK tax data on betting and gaming, alongside the potential impact of doubling Machine Games Duty as well as the results of Jumpman Gaming’s legal case.

Horner began by taking a look at HMRC’s latest gaming and betting tax data. Orme-Claye is asked to give a brief overview of the data to listeners, to which he responds, “They’ve [HMRC] been making a lot of money through iGaming tax”.

Orme-Claye continued, pointing out that the results contradict many of industries biggest fears about increasing that tax, as total taxable revenue increased, despite warnings that more taxes would lead to players moving offshore and subsequently reducing the overall level of taxable revenue.

“For politicians thinking of raising taxes further, these figures will no doubt give them a boost”, Orme-Claye said.

Horner asks Elliott the question on most gambling operators’ mind: 

Will John Healey announce an increase in Machine Games Duty this Autumn Budget? 

Elliott pointed out that Healey had been open about regularly receiving emails from former Prime Minister and Chancellor of the Exchequer, Gordon Brown, who had been an outspoken supporter of policies like this.

“We know that this is a Gordon Brown favourite policy”, Elliott said. 

Elliott continued, saying that the amount Healey would raise from the MGD increase, a figure he quotes at roughly £800 million in the first year, means nothing in government terms.

“We are, I think, £3 trillion in debt, so bringing in an extra £800 million is neither here nor there”, Elliott said. 

Remote Gaming Duty was announced by then-Chancellor Rachel Reeves in the 2025 Autumn Budget and introduced on 1 April, 2026. It was an unpopular decision that many in the gambling industry criticised. 

A recent court case involving UK operator Jumpman Gaming could potentially set a precedent for how the increased tax is taken. 

The issue stems from the inclusion of “Mega Reels” spins in the operators tax and covers accounting periods between 1 July 2018 and 31 December 2022.

Users who had won further bets through the free spin and subsequently won money on those extra spins, were included in Jumpman Gaming’s taxable figures.

“The Upper Tribunal have done something quite rare,” Orme-Claye said, “they’ve reversed the First Tier Tribunals decision around this.”

Jumpman, who had been told to pay £13.2 million in missing tax, eventually had its bill cut to nil. Orme-Claye points out that this ruling has the potential to set a precedent for the wider industry.

Watch the full discussion here.