UK Budget lifts Machine Games Duty to 25%, well short of the doubling the industry feared
UK Chancellor John Healey announced in the 28 October Budget that Machine Games Duty will rise from 20% to 25% for higher-stakes machines, while protecting pubs and seaside arcades. Industry bodies had feared a rise to 40%, but operators still say the increase will cost venues and jobs, as reported by iGaming Business.
Machine Games Duty applies to gaming machines in UK betting shops and arcades, so it has no direct effect on South African players. The wider pattern does matter. Governments in several markets are raising gambling taxes, and operators often respond by cutting costs or shifting focus to markets with lighter rules. South African players use offshore casinos that are not licensed here, and tax pressure elsewhere is one reason those operators keep courting players in markets like ours. It is a reminder to check a casino's licence and withdrawal terms before you deposit.
What the Chancellor announced
According to iGaming Business, UK Chancellor John Healey said in Wednesday's Budget that he would be "raising machine games duty from 20% to 25% for higher-stakes machines, while protecting pubs and seaside arcades". He linked the extra revenue to support for high streets, including business rate relief.
The report adds that Adult Gaming Centres and vape shops are carved out of that business rates relief. We have not been able to read the Treasury's own Budget documents for this item, so the figures here rest on that trade report and should be read as such.
Why it could have been worse
Before the Budget, talk in the sector was of a doubling to 40%. Remote Gaming Duty had already gone from 21% to 40% on 1 April 2026, and the idea of a matching jump for machines made operators nervous. The Betting and Gaming Council had cited EY modelling that a doubling could put up to 16,000 jobs at risk and close almost 1,500 betting shops and 34 casinos.
So a five-point rise was received with relief in some quarters.
Industry reaction
Relief was mixed with worry. Rank's chief executive Richard Harris is quoted as saying any increase raises costs, reduces venue viability and halts investment. The head of JenningsBet likened the revision to an airport delay cut from three hours to thirty minutes, where nobody should be cheering. The Betting and Gaming Council said further tax would add pressure on jobs, high streets and funding for British racing.
What it means for South African players
There is no change for anyone playing from South Africa. The relevant takeaway is about direction of travel:
- Gambling taxes are rising in major regulated markets, and operators feel it.
- No South African operator holds a licence for online casino games, so local players rely on offshore sites. Always check who licenses the site and read the withdrawal terms.
- Our casino reviews state what has and has not been verified; many facts are still marked as not yet verified.
Gambling carries real risk and is not a way to earn money. Only play with money you can afford to lose.