Slot machine duty rise is bittersweet

By the Editorial Team · Thursday, October 29, 2026

The UK government announced a rise in the slot machine duty from 20% to 25% starting in April 2027, a smaller increase than the 40% previously feared by the gambling sector. While shares in major betting firms rose on the news, industry leaders warn the higher tax could still result in thousands of job losses and put local businesses at risk.

Shares in London-listed gambling companies rose following the announcement of a smaller-than-expected increase in the slot machine tax, although the industry expressed strong concerns about the impact of higher levies on its businesses and workforce.

Chancellor John Healey revealed that from April 2027, the duty on slot machines will rise from 20 percent to 25 percent. This increase is less steep than the 40 percent rate feared by many in the sector. The move follows previous tax changes under former Chancellor Rachel Reeves, who had raised the remote gaming duty from 21 percent to 40 percent and increased the levy on online sports betting from 15 percent to 25 percent.

Prior to the budget, a group of ninety Labour MPs signed a letter urging Healey to raise the machine games duty. The letter highlighted that many operators are based in some of the most economically deprived areas of the country, underscoring concerns about the potential social and economic effects of the tax increase.

Despite the lower-than-feared rise, Grainne Hurst, chief executive of the Betting & Gaming Council, condemned the decision. She described it as “deeply damaging” to thousands of workers, businesses, and communities reliant on Britain’s regulated betting and gaming industry. Hurst warned that the increase threatens job security and income for families, particularly in regions where alternative employment opportunities are limited. She further cautioned that the higher levy could force viable casino businesses to close and undermine future investment.

The Betting & Gaming Council cited research from the accounting firm EY, which predicted that the duty increase could lead to as many as 9,000 job losses across the sector.

Following the announcement, shares in major gambling operators experienced gains. Entain, owner of Ladbrokes, rose 3.6 percent to 469¼ pence; Evoke, proprietor of William Hill, increased 3.7 percent to 44½ pence; and Rank, which operates Grosvenor Casinos, jumped 11.7 percent to 88 pence.

The tax adjustment forms part of the government’s broader efforts to reform gambling duties amid ongoing debates about the social impacts of the industry and its economic contributions in local communities. While the somewhat moderate increase has provided relief to investors, industry representatives warn that significant challenges remain for employees and operators alike.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.