Nearly 100 Labour MPs have co-signed a letter addressed to Chancellor John Healey advocating for an increased rate of Machine Games Duty (MGD) on category B machines.
Formalising parliamentary support for MGD reform
Authored by Alex Ballinger, MP for Halesowen and Labour co-chair of the APPG for Gambling Reform, the letter formalizes parliamentary backing for a potential tax hike as the autumn budget approaches on October 28.
The initiative formalizes a push within the Parliamentary Labour Party for tax reforms mirroring last year’s changes to Remote Gaming Duty. While Adult Gaming Centres remain the primary target, the focus on category B machines impacts high-street bookies, bingo venues, and arcade locations.
Citing polling from the Social Market Foundation (SMF) indicating 43% public support for higher taxes on slot machines in bookies, the letter argues that gambling companies should not shift community costs onto the public. Signatories include prominent parliamentarians such as Dawn Butler, Stella Creasy, Barry Gardiner, and former parliamentary under-secretary of state Dr Zubir Ahmed.
Industry response and economic concerns
Gaming and betting trade bodies have strongly condemned the proposal, warning of severe economic fallout. Grainne Hurst, CEO of the Betting and Gaming Council, cited EY modeling suggesting a rise to 40% could cost 16,000 jobs, close nearly 1,500 betting shops and 34 casinos, and leave the Treasury up to £124m worse off. Similarly, trade association Bacta warned that the proposals would devastate the British seaside economy.
Industry leaders, including Rank CEO Richard Harris, noted that raising MGD past the 20% threshold could prove counterproductive by diminishing overall tax revenues through widespread venue closures.
