UK Labour MPs Back 40% Tax on Category B Machines

Nearly 90 Labour MPs have backed a proposal to increase the UK’s Machine Games Duty (MGD) on Category B gaming machines to 40%, ahead of the government’s Autumn Budget. Former Prime Minister Gordon Brown has also expressed support for the proposed tax increase.

The campaign is led by Alex Ballinger, MP for Halesowen, who is calling on the Chancellor to adopt recommendations from the Social Market Foundation (SMF). The think tank estimates that raising the MGD rate could generate between £275 million and £458 million in additional tax revenue each year.

Category B machines can offer prizes of up to £500 and are commonly found in betting shops, bingo venues and arcades across the UK. Current MGD rates vary between 5% and 25%, depending on the type of machine.

Supporters of the proposed increase argue that gambling venues are often concentrated in economically disadvantaged communities and that machines offering larger prizes can contribute to greater gambling-related harm. Ballinger has also called for all possible exemptions to be removed for machines operating in pubs.

Gambling industry warns of potential job losses

The proposal has drawn opposition from industry organisations, including the Bingo Association, Bacta and the Betting and Gaming Council (BGC). These groups warn that higher taxes could put jobs at risk across the gambling sector.

Several operators have already announced plans to reduce their workforces or shut retail locations in the UK, adding to concerns about the potential effects of further tax increases.

The BGC is campaigning against additional pressure on land-based operators through its Back Our Betting Shops initiative, which seeks to protect the high street betting sector.

Betfred founder Fred Done has warned that increasing MGD could leave high street bookmakers out of business by 2030. Rank Group has also indicated that a tax rise could force it to close around one-third of its venues.

Opposition has extended beyond gambling operators. More than 1,000 representatives from the greyhound racing industry have signed a letter opposing the proposed increase, highlighting the wider concerns surrounding its potential impact.