Measure

Machine games duty 

The measure

The rate of machine games duty (MGD) will increase from 20% to 25% for machines with stakes over £1 or prizes over £100.  

The government has also launched a consultation on making machine suppliers liable for MGD on supplier-owned machines that are operated under profit sharing arrangements. Premises licence holders, permit holders, and pub tenants will remain liable for MGD where they own or lease the machine and control the takings. 

 

Who will be affected?

Businesses involved in the gaming machine industry. 

 

When will the measure come into effect?

The rate of MGD will increase from 1 April 2027. 

The consultation on liability for MGD will close on 20 January 2027, and it is intended that the changes will take effect from 1 April 2028.

 

Our view

The increase in MGD was not unexpected,  but was lower than widely anticipated. 

The consultation gives the industry an opportunity  to provide input into the development of the proposed change to liability.