Bacta and 120 businesses urge UK Chancellor to keep Machine Games Duty at 20% before budget

Bacta, the UK trade body representing low-stakes entertainment, has released a letter co-signed by 120 independent businesses calling on Chancellor John Healey to leave Machine Games Duty at its current 20% rate. The letter was published shortly before the budget statement due on 28 October.

An increase in MGD has been rumored for months. The size of any rise remains a matter of speculation, with some in the industry expecting a move to 25% and others fearing the rate could double to 40%. The prospect has led the wider UK gambling sector to mount a coordinated lobbying effort, which argues that thousands of jobs in land-based betting are at risk. Bacta had been comparatively quiet until now, with this letter forming its largest intervention so far.

The signatories, who include operators and family-run firms, say a higher duty would leave their venues caught in a legislative trap. Stake and prize levels are capped by law, so operators cannot adjust them to absorb extra costs. The letter adds that venues are already under pressure from higher energy bills, commercial rents, wage inflation and increased employer National Insurance contributions.

Bacta members also pointed out that they pay Value Added Tax on the services they provide. Non-recoverable VAT reached £56m in 2025, which the group says reduces the capital available for reinvestment in their businesses.

The letter argues that further MGD increases would run counter to the government's stated aim of spreading growth to every postcode. If venues were forced to close, it warns, the impact would extend across a supply chain including cleaning and security companies, food and drink suppliers, taxi firms and professional services. It also notes that job losses could fall on areas with historically limited employment opportunities.

Bacta President Joseph Cullis said the signatures show the effect a rise would have on community-based businesses from the amusement, bingo and leisure sectors, together with the manufacturers and suppliers that support them. He said they provide thousands of jobs and sit at the heart of high streets and seaside communities. According to Cullis, a higher duty could be the final straw for some firms. He acknowledged the difficult decisions facing the Treasury but urged the Chancellor to weigh the real-world consequences, noting that lost jobs and investment would be hard to replace.