Overview
- Chancellor John Healey confirmed in the Budget on Wednesday that machine games duty for higher‑stakes betting‑shop machines will rise from 20% to 25% from April 2027.
- The British Horseracing Authority and independent analysts say the rise could strip about £57 million a year from racing through lower levy and media‑rights payments and threaten prize money and racecourse viability.
- Industry modelling from Regulus and EY projects hundreds to thousands of betting‑shop closures over the next four years, with the BGC warning of major job losses and operators planning shop closures and estate consolidation to cut costs.
- The Treasury says the tax will fund raising the small‑business rates threshold and an online VAT crackdown, with official estimates showing modest extra receipts for 2027‑28 and 2028‑29.
- Campaigners and operators warn the change could push some customers to illegal sites, weaken sponsorship and hollow high streets, and the BHA has requested urgent talks with the government to seek mitigation.