Labour MPs press the UK Chancellor for higher tax on Category B gaming machines
A group of Labour MPs led by Alex Ballinger has written to the UK Chancellor asking for a higher machine games duty rate on Category B gambling machines before the Autumn Budget on 28 October 2026. The Betting and Gaming Council has called the idea deeply misguided.
This is a UK tax debate and does not change anything for South African players. It does show where gambling policy is heading in the biggest regulated market: higher-harm products are being taxed more heavily, and operators warn of job losses. Many of the brands South Africans see advertised are run by groups that also operate in the UK, so tax pressure there can shape their costs and strategy, though we have no sourced evidence of any effect on offers to South African players.
What happened
iGaming Business reported on 19 October 2026 that a group of Labour MPs, led by Alex Ballinger, sent a letter to the Chancellor on the Friday before. It calls for a higher rate of machine games duty (MGD) on Category B machines, and in particular B3 machines found in adult gaming centres.
The letter arrives amid speculation that the Autumn Budget on 28 October will raise taxes on land-based gambling.
The argument for a rise
The MPs describe the change as popular, targeted and proportionate. They argue that higher-harm products should face higher tax, noting that remote gaming duty on online gambling rose from 21% to 40% from 1 April 2026. They also say pubs would be unaffected because pubs cannot offer Category B machines. The letter cites Social Market Foundation polling that found 43% of voters back higher taxes on slot machines in high street betting shops.
The industry response
The Betting and Gaming Council's chief executive, Grainne Hurst, called the proposal deeply misguided. She cited studies suggesting that an MGD rise to 40% could cost up to 16,000 jobs and close almost 1,500 betting shops and 34 casinos.
Rank Group has also warned that any rise would reduce venue viability and halt investment, even as it reported a 5% like-for-like increase in net gaming revenue for the first quarter of its financial year. An earlier Deutsche Bank analysis named Rank as the operator most exposed.
What it means for South African players
Nothing changes for you today. The wider lesson is that offshore-licensed casinos serving South Africans operate under very different tax and licensing regimes from the UK. Check the licence details on a casino's own review page here before you play, and remember that not being licensed in South Africa is a separate question from accepting South African players.
What to watch next
The Budget on 28 October will show whether the Treasury acts on the call. Whatever the decision, it will be reported as a signal for how far the UK will push gambling taxes after the online duty rise.