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Entain has warned the UK government that a reported Machine Games Duty increase could add £100 million a year to retail costs and put thousands of betting shop jobs at risk.
Good to Know
- The standard Machine Games Duty rate currently stands at 20%, while higher rate machines face 25%.
- The Financial Times reports that Chancellor John Healey is considering a 40% rate for higher stake machines in betting shops and adult gaming centres.
- Betting and Gaming Council research with EY estimates up to 1,470 shop closures and 15,900 job losses under a 40% rate.
Entain Puts Retail Jobs At Centre Of Tax Warning
Entain CEO Stella David has written to Prime Minister Andy Burnham ahead of the October Autumn Budget, warning that another gambling tax increase could make a large part of the UK betting shop network uneconomic.
David said a 40% Machine Games Duty rate could add roughly £100 million to annual retail costs for Entain. Industry research commissioned through the Betting and Gaming Council and EY estimates the change could contribute to 1,470 betting shop closures and up to 15,900 job losses.
“They are people losing their jobs and communities losing long-established high-street businesses,” David wrote.
“These jobs matter. They matter particularly in communities where good local employment can be difficult to find.”
Around half of Entain retail staff are women, more than half work part time or flexible hours and more than 2,500 employees are under 25, according to the letter.
The warning comes only months after Remote Gaming Duty increased from 21% to 40% on April 1. A separate 25% rate for remote betting will start in April 2027, while retail fixed odds betting remains at 15%.
Entain Warns Customers Could Leave Regulated Market
Machine revenue helps support betting shops outside major racing days, according to Entain. The operator also linked its retail network to around £50 million in annual funding for British horse racing.
David warned that raising MGD could redirect as much as £1 billion in stakes away from licensed operators.
The Financial Times reported that the Social Market Foundation has proposed doubling the standard Machine Games Duty rate, estimating the policy could raise as much as £458 million annually. The government has not yet confirmed that the increase will form part of the October Budget.
Entain has requested meetings with ministers before final tax decisions are made.
At the same time, the company is consulting on around 400 customer care roles from a UK team of roughly 2,000.
“The proposed changes are being made to ensure our business remains competitive, financially resilient and well positioned for the future as our sector faces an increasingly challenging operating environment,” David said.
“This decision has not been made lightly and our immediate priority is to support those of our colleagues who may be impacted through this transition.”
The consultation follows an earlier Entain restructuring involving around 500 roles globally. The company said that programme formed part of a wider efficiency plan rather than a response to UK gambling tax increases.
FAQ
What is Machine Games Duty in the UK?
Machine Games Duty applies to net takings from gaming machines. HMRC currently charges 5% for qualifying low stake machines, 20% for standard machines and 25% for machines where the maximum cost to play can exceed £5.
Is Machine Games Duty increasing to 40%?
No increase has yet been confirmed. The Financial Times reports that Chancellor John Healey is considering a 40% rate ahead of the October Autumn Budget.
How many betting shops could close?
Research commissioned through the Betting and Gaming Council and EY estimates that a 40% rate could contribute to as many as 1,470 closures and 15,900 job losses. Those figures represent industry commissioned estimates rather than a government forecast.
What is the UK Remote Gaming Duty rate?
Remote Gaming Duty increased from 21% to 40% from April 1, 2026.
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