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Treasury Reportedly Poised to Raise Machine Games Duty to 25%

If confirmed the change would cut bookmakers’ payments to racing and raise the risk of retail shop closures and job losses.

Overview

  • The Times and industry outlets report the Treasury is considering a rise in machine games duty from 20% to 25% that Chancellor John Healey is due to set out in his budget on Wednesday, October 28.
  • Bookmakers and analysts warn even a five percentage-point increase would shave tens of millions of pounds from British racing’s income and force retail closures and staff reductions.
  • Betfred’s figures seen by the Racing Post show the company’s contribution to racing could fall by about £9 million at 25% compared with a larger £15.8m hit modelled at 40%.
  • Flutter Entertainment has already announced up to 1,400 job cuts in its UK and Ireland arm and has linked those reductions to the impact of last year’s gambling tax rises.
  • Independent analyst Regulus Partners and others say the sector must change its repeated pre-budget lobbying because even a smaller rise would still worsen racing finances and accelerate shop closures.