Budget 2026: tax on high-street slot machines rises to 25%, online slots untouched
Chancellor John Healey’s first Budget, on 28 October 2026, raised the tax on higher-stake gaming machines from 20% to 25% from 1 April 2027 to help pay for a high-street business rates package. The steeper rise the industry had feared did not happen, and online slots were left alone: Remote Gaming Duty stays at the 40% rate introduced in April 2026.
By Ryan Jessop. Published .
Key points
- Machine Games Duty on machines with stakes above £1 per play rises from 20% to 25% from 1 April 2027.
- Pubs and seaside arcades stay on lower rates; the rise targets Category B machines in betting shops and adult gaming centres.
- A consultation on moving duty liability to machine suppliers from April 2028 closes on 20 January 2027.
- Remote Gaming Duty on online casino games and slots is unchanged at 40%.
- Entain, owner of Coral and Ladbrokes, estimates about £25m a year in extra cost.
- Budget date
- 28 October 2026
- New MGD rate
- 25% (from 20%)
- From
- 1 April 2027
- Online duty
- 40%, unchanged
- Consultation closes
- 20 January 2027
What changed
Machine Games Duty (MGD) is the tax on profits from gaming machines in venues. The Budget raises the standard rate on higher-stake machines, those with stakes of more than £1 a play, from 20% to 25% from 1 April 2027. These are mainly Category B machines in betting shops, adult gaming centres, bingo halls and casinos. Healey said he was “protecting pubs and seaside arcades”, which keep their current rates.
| Duty | Change | From |
|---|---|---|
| Remote Gaming Duty (online casino and slots) | 21% to 40% | 1 April 2026 |
| General Betting Duty (remote betting) | 15% to 25% | 1 April 2027 |
| Machine Games Duty (higher-stake machines) | 20% to 25% | 1 April 2027 |
| Bingo Duty | Abolished | 1 April 2026 |
Less than feared
Before the Budget, reports suggested MGD could double, taking the standard rate to 40%. Entain’s chief executive had warned in September that doubling would add about £100 million a year to the cost of running its UK shops. In the event, Entain told the London Stock Exchange on Budget day that the 25% rate should cost it about £25 million a year. The government expects the rise, together with a planned change making suppliers liable for duty on some machines from April 2028, to raise £135 million in 2027-28 and £150 million in 2028-29.
Why online slots were spared this time
Online operators took their hit last year: the November 2025 Budget nearly doubled Remote Gaming Duty to 40% from 1 April 2026. This Budget left that rate alone, though a separate measure rewrites how free spins are treated for the duty from April 2027; see our story on the free spins tax change.
What it means for players
Nothing changes for online slots or for your winnings, which remain tax-free. If you play machines in betting shops or arcades, operators may respond to the higher duty by trimming estates or adjusting machine settings, within the limits the rules allow. Online, the protections stay the same: a £5 maximum stake (£2 for ages 18 to 24) and a 2.5-second minimum spin.
Slot figures are developers' published defaults, each confirmed against two sources; your casino may run a lower RTP. Offer terms dated 9 October 2026. How we check. 18+. Free help: 0808 8020 133 or safer gambling.
Frequently asked questions
What is the new Machine Games Duty rate?
25% on higher-stake machines (stakes above £1 a play) from 1 April 2027, up from 20%.
Did the Budget change tax on online slots?
No. Remote Gaming Duty stays at 40%. Separately, HMRC is rewriting how free spins are treated for the duty from April 2027.
Do I pay tax on slot winnings?
No. UK players do not pay tax on gambling winnings.
Related pages
Sources
- Gambling.com: UK Budget lifts Machine Games Duty to 25% (opens in a new tab)
- Gaming.net: UK Budget raises MGD to 25% for higher-stake machines (opens in a new tab)
- European Gaming: Entain expects £25m annual cost from MGD rise (opens in a new tab)
- Pinsent Masons: UK Budget 2026 gambling tax rise (opens in a new tab)
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