UK Gambling Operators Urge Chancellor to Reconsider Machine Games Duty Rise Before October 2026 Budget

Major UK gambling companies including Entain, Flutter Entertainment, Evoke, bet365 and Betfred have coordinated through the Betting and Gaming Council to send a direct letter to Chancellor of the Exchequer John Healey, and the correspondence urges him to pause or delay planned increases to Machine Games Duty ahead of his first Budget scheduled for later in October 2026. The letter highlights that lifting the duty from its current typical rate of 20 percent to 40 percent would trigger between 28 and 34 casino closures while placing thousands of jobs at risk, and it builds on earlier effects already observed after the Remote Gaming Duty adjustment took hold.

Details of the Industry Warning

The Betting and Gaming Council coordinated the message on behalf of its members, and the group points to modelling that forecasts 3,800 casino positions could disappear if the higher rate moves forward without adjustment. Observers note the operators frame the proposal as one that would ultimately reduce net revenue reaching the Treasury once secondary economic effects such as supplier losses and reduced local spending are taken into account. The letter references data from a BGC-commissioned EY analysis that models these tax-hike impacts and shows the projected shortfall after closures begin.

Those who have reviewed the submission say it arrives at a moment when the government is preparing its fiscal plans for the coming year, and the industry representatives stress that further pressure on physical venues compounds challenges already present from the earlier Remote Gaming Duty change. Figures reveal that casino operators currently contribute through a combination of Machine Games Duty, business rates and employment taxes, while any reduction in operating locations would shrink that combined contribution according to the same modelling.

Scope of Potential Closures and Job Effects

The warned outcomes include the loss of between 28 and 34 venues across the United Kingdom, and the analysis ties these closures directly to the doubled duty rate on gaming machines located inside casinos and other licensed premises. Data indicates that more than 3,800 roles tied to casino operations would be affected, with additional indirect positions in supply chains and hospitality also placed under pressure once footfall declines. The letter explains that smaller and regional sites would face the earliest difficulties because machine revenue forms a larger share of their overall income compared with larger London properties.

Researchers who examined similar tax adjustments in previous years found that abrupt rate changes often accelerate consolidation, and the current projection follows that pattern by estimating how many sites would no longer cover fixed costs after the increase. The operators emphasise that the Treasury would experience a net loss once corporation tax receipts, national insurance contributions and local authority revenues from closed sites are subtracted from the additional Machine Games Duty collected at surviving locations.

Context Around the October 2026 Budget Timeline

The letter was delivered in advance of the Chancellor’s first Budget appearance later in October 2026, and industry representatives requested a formal pause so that further economic impact assessments could be completed. They note that the Remote Gaming Duty rise already produced measurable shifts in player behaviour and operator margins, and they argue that layering an equivalent increase onto land-based machines would repeat those dynamics on a larger scale. The submission includes examples of venues that reduced machine numbers or adjusted opening hours after the earlier duty change, and it presents those cases as early indicators of what could become widespread if the 40 percent rate is confirmed.

According to the Betting and Gaming Council statement that accompanied the letter, the modelling assumes no offsetting measures such as stake-limit reforms or new licensing categories that might generate alternative revenue streams. The group therefore asks for time to examine whether any such measures could mitigate the projected closures before the duty change is locked into the October 2026 fiscal package.

Conclusion

The coordinated approach taken by Entain, Flutter Entertainment, Evoke, bet365, Betfred and other Betting and Gaming Council members places a single, data-backed request before the Chancellor: delay the Machine Games Duty increase until the full range of employment and fiscal consequences can be verified. The letter and its supporting EY analysis now sit with Treasury officials as they finalise the October 2026 Budget, and the outcome will determine whether the warned closures and job reductions materialise or whether alternative tax settings emerge.